Management MCQs

Complaint letter should be called_____________

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A. Persuasive letters
B. Claim letter
C. Inquiry letters
D. Sales letters
✅ The correct answer is option B.
Complaint letter should be called claim letter. A claim letter is a persuasive letter sent by a customer to a business or agency to identify a problem with a product or service and can also be referred to as a letter of complaint.

An example of a core competency of a firm is

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A. the corporate reputation
B. communicating with customers in their own languages worldwide
C. developing least squared exemptions within its accounting system
D. evaluating tangible and intangible assets
✅ The correct answer is option B.
An example of a core competency of a firm is communicating with customers in their own languages worldwide. Core competencies differentiate an organization from its competition and create a company’s competitive advantage in the marketplace. Typically, a core competency refers to a company’s set of skills or experience in some activity, rather than physical or financial assets.

Impact of 9/11 is

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A. Political Instability
B. Terrorist Attack
C. More foreign investment
D. Economic Instability
✅ The correct answer is option D.
Impact of 9/11 is Economic Instability. The economic effects of the September 11 attacks were initial shocks causing global stock markets to drop sharply. The September 11 attacks themselves resulted in approximately $40 billion in insurance losses, making it one of the largest insured events ever.

Treasury securities are considered as exempted from

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A. federal taxes
B. local and state taxes
C. federal discounts
D. deferral premium
✅ The correct answer is option A.
Treasury securities are considered as exempted from federal taxes. The federal income tax is the tax levied by the United States Internal Revenue Service (IRS) on the annual earnings of individuals, corporations, trusts, and other legal entities. Federal income taxes are applied to all forms of earnings that make up a taxpayer’s taxable income, such as employment earnings or capital gains.

ADR/GDR can be issued

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A. only by listed companies
B. by listed or unlisted companies
C. only by companies listed on BSE
D. none of the above
✅ The correct answer is option A.
ADR/GDR can be issued only by listed companies. With the help of ADR, foreign companies can trade in US stock market, through various bank branches. On the other hand, GDR helps foreign companies to trade in any country’s stock market other than the US stock market, through ODB’s branches. ADR is issued in America while GDR is issued in Europe.

A young industry that is beginning to form is considered to be in __________ stage

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A. Introduction
B. Growth
C. Shakeout
D. Maturity
✅ The correct answer is option A.
A young industry that is beginning to form is considered to be in Introduction stage. Demand for the industry’s outputs is low at this time because product and/or service awareness is still developing.

Markov analysis is useful for:

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A. Predicting the state of the system at some future time
B. Calculating transition probabilities at some future time
C. All of the above
D. None of the above
✅ The correct answer is option C.
Markov analysis is useful for Predicting the state of the system at some future time and Calculating transition probabilities at some future time.

Cash flows method, used by net present value method and internal rate of return are

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A. vertical cash flows
B. discounted cash flows
C. lean cash flows
D. future cash flows
✅ The correct answer is option B.
Cash flows method, used by net present value method and internal rate of return are discounted cash flows. Discounted cash flow (DCF) is a valuation method used to estimate the value of an investment based on its future cash flows.