M C Q s D r i v e

Management Sciences 5307 MCQs [All-Courses]

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Management Sciences focuses on the planning, organizing, leading, and controlling of resources to achieve organizational goals.This subject is highly important for competitive exams, academic study, and professional careers in the business and public sectors.

First step in calculation of net present value is to find out_________?
A Present value of equity
B Future value of equity
C Present value cash flow
D Future value of cash flow
Correct Answer: Present value cash flow
Present value of future cash flows is divided by an initial cost of project to calculate_______?
A Negative index
B Exchange index
C Project index
D Profitability index
Correct Answer: Profitability index
An uncovered cost at start of year is $200, full cash flow during recovery year is $400 and prior years to full recovery is 3 then payback would be__________?
A 5 years
B 3.5 years
C 4 years
D 4.5 years
Correct Answer: 5 years
Relationship between Economic Value Added (EVA) and Net Present Value (NPV) is considered as____________?
A Valued relationship
B Economic relationship
C Direct relationship
D Inverse relationship
Correct Answer: Direct relationship
Profitability index in capital budgeting is used for_________?
A Negative projects
B Relative projects
C Evaluate projects
D Earned projects
Correct Answer: Evaluate projects
In mutually exclusive projects, project which is selected for comparison with others must have____________?
A Higher net present value
B Lower net present value
C Zero net present value
D All of above
Correct Answer: Higher net present value
A project whose cash flows are more than capital invested for rate of return then net present value will be___________?
A Positive
B Independent
C Negative
D Zero
Correct Answer: Positive
An equity multiplier is multiplied to return on assets to calculate_________?
A Return on assets
B Return on multiplier
C Return on turnover
D Return on stock
Correct Answer: Return on assets
Process of comparing company results with other leading firms is considered as____________?
A Comparison
B Analysis
C Bench marking
D Return analysis
Correct Answer: Bench marking
High price to earning ratio shows company’s_____________?
A Low dividends paid
B High risk prospect
C High growth prospect
D High marginal rate
Correct Answer: High growth prospect