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.

The conflict of interest between stockholders and management is known as:
A Agency problem
B Interest conflict
C Management conflict
D Agency cost
Correct Answer: Agency problem
During the accounting period, sales revenue is Rs. 25,000 and accounts receivable increases by Rs. 8,000. What will be the amount of cash received from customers for the period?
A Rs. 33,000
B Rs. 25,000
C Rs. 17,000
D Rs. 8,000
Correct Answer: Rs. 17,000
Which of the following is a series of constant cash flows that occur at the end of each period for some fixed number of periods?
A Ordinary annuity
B Annuity due
C Perpetuity
D None of the given options
Correct Answer: Ordinary annuity
Which of the following is not a quality of IRR ?
A Most widely used
B Ideal to rank the mutually exclusive investments
C Easily communicated and understood
D Can be estimated even without knowing the discount rate
Correct Answer: Ideal to rank the mutually exclusive investments
A model which makes an assumption about the future growth of dividends is known as:
A Dividend Price Model
B Dividend Growth Model
C Dividend Policy Model
D All of the given options
Correct Answer: Dividend Growth Model
_________ refers to the most valuable alternative that is given up if a particular investment is undertaken?
A Sunk cost
B Opportunity cost
C Financing cost
D All of the given options
Correct Answer: Opportunity cost
The use of Personal borrowing to alter the degree of financial leverage is called__________?
A Homemade leverage
B Financial leverage
C Operating leverage
D None of the given option
Correct Answer: Homemade leverage
_______________refers to the extent to which fixed-income securities (debt and preferred stock) are used in a firm’s capital structure?
A Financial risk
B Portfolio risk
C Operating risk
D Market risk
Correct Answer: Financial risk
Which of the following is the cheapest source of financing available to a firm?
A Bank loan
B Commercial papers
C Trade credit
D None of the given options.
Correct Answer: Trade credit
Average Accounting Return is a measure of accounting profit relative to:
A Book value
B Intrinsic value
C Cost
D Market value
Correct Answer: Book value