Management MCQs

Human resource management is the formal part of an organisation responsible for all of the following aspects of the management of human resources except

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A. systems, processes, and procedures
B. policy making, implementation, and enforcement
C. strategy development and analysis
D. management of the Organisation’s finances
✅ The correct answer is option D.
Human resource management is the formal part of an organisation responsible for all of the following aspects of the management of human resources except management of the Organisation’s finances. Finance is defined as the management of money and includes activities like investing, borrowing, lending, budgeting, saving, and forecasting. Corporate finance also includes the tools and analysis utilized to prioritize and distribute financial resources.

When bonds are called and redeem, they must be ceased to

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A. earn interest
B. pay interest
C. earn floating rate
D. earn funding rate
✅ The correct answer is option A.
When bonds are called and redeem, they must be ceased to earn interest. Investors who purchase a company’s bonds receive interest on the bond and are promised a return on their investment at a future date. The future date is when a bond matures. Usually, the bond issuer repays the bond principal to the investor on the maturity date.

_________ strategy determines what businesses an organization should be in

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A. Business
B. Organizational
C. Operational
D. Corporate
✅ The correct answer is option D.
Corporate strategy determines what businesses an organization should be in. Corporate strategy is hierarchically the highest strategic plan of the organization, which defines the corporate overall goals and directions and the way in which will be achieved within strategic management activities. It is a long-term, clearly defined vision of the direction of a company or organization.

Type of swaps in which fixed payments of interest are exchanged by two counterparties for floating payments of interest are called

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A. float-fixed swaps
B. interest rate swaps
C. indexed swaps
D. counter party swaps
✅ The correct answer is option B.
Type of swaps in which fixed payments of interest are exchanged by two counterparties for floating payments of interest are called interest rate swaps. An interest rate swap is a type of a derivative contract through which two counterparties agree to exchange one stream of future interest payments for another, based on a specified principal amount. In most cases, interest rate swaps include the exchange of a fixed interest rate for a floating rate.

Transaction of federal funds usually take place in form of

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A. functional loans
B. annual loans
C. unsecured loans
D. secured loans
✅ The correct answer is option C.
Transaction of federal funds usually take place in form of unsecured loans. An unsecured loan is a loan that is issued and supported only by the borrower’s creditworthiness, rather than by any type of collateral. Unsecured loans sometimes referred to as signature loans or personal loans are approved without the use of property or other assets as collateral.

In capital markets, instruments which are traded having maturity of more than one year is classified as

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A. contraction mortgages
B. bonds and mortgages
C. expansion bonds
D. expansion mortgages
✅ The correct answer is option B.
In capital markets, instruments which are traded having maturity of more than one year is classified as bonds and mortgages. A mortgage bond is a bond secured by a mortgage or pool of mortgages. These bonds are typically backed by real estate holdings and real property such as equipment. In a default situation, mortgage bondholders have a claim to the underlying property and could sell it off to compensate for the default.

The first of Porters Five Forces model is the

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A. Intensity of rivalry among industry competitors
B. Threats of new entrants
C. Bargaining power of suppliers
D. Bargaining power of buyers
✅ The correct answer is option B.
The first of Porters Five Forces model is the threats of new entrants. Threat of new entrants refers to the threat new competitors pose to existing competitors in an industry. Therefore, a profitable industry will attract more competitors looking to achieve profits.

What is one of the major barriers to effective time management?

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A. Procrastination
B. Being well organized
C. Lack of money
D. Lack of time
✅ The correct answer is option A.
Procrastination is one of the major barriers to effective time management. Procrastination is the avoidance of doing a task that needs to be accomplished by a certain deadline. It could be further stated as a habitual or intentional delay of starting or finishing a task despite knowing it might have negative consequences.

The following is not a job evaluation method.

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A. Factor comparison method
B. Point Method
C. Ranking method
D. Assessment method
✅ The correct answer is option D.
The Assessment method is not a job evaluation method. A business assessment helps you to achieve your company’s goals, to expand and grow your business in a smart and strategic way. As the company owner, you have to be aware of the strengths and weaknesses of your company.

Division of all costs related to customers on basis of different cost allocation bases or cost drivers is called

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A. customer cost hierarchy
B. customer profitability hierarchy
C. treasury costing hierarchy
D. partial costing hierarchy
✅ The correct answer is option A.
Division of all costs related to customers on basis of different cost allocation bases or cost drivers is called customer cost hierarchy. The cost hierarchy is a classification system used in activity-based costing that designates activities based on how easily they can be traced to a product.