Management MCQs

Type of liability in which stockholders losses are counted for only invested amount in firm is classified as

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A. counted liability
B. invested liability
C. unlimited liability
D. limited liability
✅ The correct answer is option D.
Limited liability is a type of legal structure for an organization where a corporate loss will not exceed the amount invested in a partnership or limited liability company. In other words, investors’ and owners’ private assets are not at risk if the company fails.

Actual price of material is less than budgeted price, this means that

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A. price variance is favourable
B. price variance is unfavourable
C. cost variance is favourable
D. cost variance is unfavourable
✅ The correct answer is option A.
Actual price of material is less than budgeted price, this means that price variance is favourable. A price variance is the difference between the actual revenue or cost and the budgeted revenue or cost because of a difference between the actual unit price and the budgeted unit price.

Which of the following is an example of operative function of HR managers?

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A. planning
B. Organizing
C. Procurement
D. Controlling
✅ The correct answer is option C.
Procurement is an example of operative function of HR managers. Procurement deals with the sourcing activities, negotiation and strategic selection of goods and services that are usually of importance to an organization. Purchasing is the process of how goods and services are ordered.

Consumer complaints tend to be:

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A. instrumental and ostensive
B. instrumental and reflexive
C. non-instrumental and ostensive
D. non-instrumental and reflexive
✅ The correct answer is option C.
Consumer complaints tend to be non-instrumental and ostensive. A consumer complaint or customer complaint is “an expression of dissatisfaction on a consumer’s behalf to a responsible party”.

Major liabilities of commercial banks are

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A. junk bonds
B. deposits
C. loans
D. swap bonds
✅ The correct answer is option B.
Major liabilities of commercial banks are deposits. A deposit is a financial term that has multiple definitions.On the one hand, a deposit is a transaction involving a transfer of funds to another party for safekeeping. On the other, a deposit also refers to a portion of funds used as security or collateral for the delivery of a good.

Aggregating prospective buyers into groups is called:

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A. market categorization
B. market segmentation
C. modeling
D. BCG matrix analysis
✅ The correct answer is option B.
Aggregating prospective buyers into groups is called market segmentation. Market segmentation is the process of dividing a market of potential customers into groups, or segments, based on different characteristics. The segments created are composed of consumers who will respond similarly to marketing strategies and who share traits such as similar interests, needs, or locations.

Which of these questions is addressed by a mission statement?

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A. What do we want to become?
B. What is our business?
C. How many employees must we have?
D. Who do we want to serve?
✅ The correct answer is option B.
What is our business? is addressed by a mission statement. A mission statement defines what an organization is, why it exists, its reason for being. At a minimum, your mission statement should define who your primary customers are, identify the products and services you produce, and describe the geographical location in which you operate.

In any real time system ___ factors are termed as boundaries of the system.

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A. Statement
B. Conditions
C. Blocks
D. Limit
✅ The correct answer is option D.
In any real time system limit factors are termed as boundaries of the system. A boundary component of a system is then delined as one every neighborhood of which contains at least one system component and at least one thing in the environment of the component. A boundary of a system is defined as the set of all its boundary components.

Which of the following statements is NOT true regarding corporate strategies?

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A. They are concerned with the broad and more long-term issues of the organization
B. They are concerned with how the organization is going to compete in a specific business or industry
C. They are concerned with the direction the organization is headed
D. They are concerned with the business(es) that the organization is in and the businesses they want to be in
✅ The correct answer is option B.
They are concerned with how the organization is going to compete in a specific business or industry is not true regarding corporate strategies.