M C Q s D r i v e

Management Sciences 5308 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.

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

Profitability index (PI) rule is to take an investment, if the index exceeds___________?

A -1
B 0
C 1
D 2
Correct Answer: 1

When real rate is high, all the interest rates tend to be ___________?

A Higher
B Lower
C Constant
D None of These
Correct Answer: Higher

Which of the following statement is CORRECT regarding compound interest?

A It is the most basic form of calculating interest.
B It earns profit not only on principal but also on interest.
C It is calculated by multiplying principal by rate multiplied by time.
D It does not take into account the accumulated interest for calculation.
Correct Answer: It earns profit not only on principal but also on interest.