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.

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.
Which of the following strategy belongs to restrictive policy regarding size of investments in current assets?
A To maintain a high ratio of current assets to sales
B To maintain a low ratio of current assets to sales
C To less short-term debt and more long-term debt
D To more short-term debt and less long-term debt
Correct Answer: To maintain a low ratio of current assets to sales