Management MCQs

A technique, which accumulates and tracks costs of business function in value chain attributed to each market offering from R&D to final customer support, is called

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A. product life cycle
B. life cycle budgeting
C. life cycle costing
D. target costing
✅ The correct answer is option C.
A technique, which accumulates and tracks costs of business function in value chain attributed to each market offering from R&D to final customer support, is called life cycle costing. Life cycle costing is the process of compiling all costs that the owner or producer of an asset will incur over its lifespan.

Managers should study international business because

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A. international business comprises a large and growing portion of the worlds total business
B. global events and competition affect almost all companies
C. a company operating internationally will engage in modes of business that differ from those it is accustomed to domestically
D. all of the above
✅ The correct answer is option D.
Managers should study international business because international business comprises a large and growing portion of the worlds total business, global events and competition affect almost all companies and a company operating internationally will engage in modes of business that differ from those it is accustomed to domestically

Probabilities of occurrence of any state are.

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A. Collectively exhaustive
B. Mutually exclusive
C. Representing one of the finite numbers of states of nature in the system
D. All of the above
✅ The correct answer is option D.
Probabilities of occurrence of any state are Collectively exhaustive, Mutually exclusive and Representing one of the finite numbers of states of nature in the system.

Residual claims, limited rights, limited liability and dividend payments on discrete basis are considered as

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A. characteristics of fundamental stock
B. characteristics of claimed stock
C. characteristics of common stock
D. characteristics of preferred stock
✅ The correct answer is option C.
Residual claims, limited rights, limited liability and dividend payments on discrete basis are considered as characteristics of common stock. Common stock is a security that represents ownership in a corporation. Holders of common stock exercise control by electing a board of directors and voting on corporate policy.

Right of stockholders of firm that new shares must be offered to existing stockholders first rather than new stock holders is classified as

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A. non-offered rights
B. pre-emptive rights
C. existing rights
D. securitize rights
✅ The correct answer is option B.
Right of stockholders of firm that new shares must be offered to existing stockholders first rather than new stock holders is classified as pre-emptive rights. Preemptive rights are a clause in an option, security or merger agreement that gives the investor the right to maintain his or her percentage ownership of a company by buying a proportionate number of shares of any future issue of the security.

Which of the following would a market-driven business most likely be?

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A. Competitive
B. Efficient
C. Flexible
D. Resourceful
✅ The correct answer is option D.
A market-driven business most likely be resourceful. Market-driven is defined as: “Firm’s policy or strategy guided by market trends and customer needs instead of the firm’s productive capacity or current products.”

The following is (are) included in salary survey.

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A. Average salary
B. Inflation indicators
C. Salary budget averages
D. All of the above
✅ The correct answer is option D.
Average salary, Inflation indicators and Salary budget averages are included in salary survey. Salary surveys are typically conducted with numerous Organisations in a given employment sector or industry in order to determine levels of pay for specific job groups or classifications.

Money received for purchase of shares in Indian company by a foreign investor will be treated as foreign direct investment if

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A. The investment is in equity shares
B. The shares are allotted directly to him by the company
C. The investor has an intention to take active role in the management of the company
D. The shares are acquired other than through stock exchange
✅ The correct answer is option D.
Money received for purchase of shares in Indian company by a foreign investor will be treated as foreign direct investment if the shares are acquired other than through stock exchange. NRIs are also allowed to contribute to capital of Indian companies by investing in shares on Recognized Stock Exchanges under Portfolio Investment Route.

Standard deviation determine

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A. systematic risk of a security
B. unsystematic risk of security
C. total risk of security
D. premium of security
✅ The correct answer is option C.
Standard deviation determine total risk of security. Standard deviation is a statistical measurement in finance that, when applied to the annual rate of return of an investment, sheds light on the historical volatility of that investment.