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.

Which of the following relationships holds TRUE if a bond sells at a discount?
A Bond Price < Par Value and YTM > coupon rate
B Bond Price > Par Value and YTM > coupon rate
C Bond Price > Par Value and YTM < coupon rate
D Bond Price < Par Value and YTM < coupon rate
Correct Answer: Bond Price < Par Value and YTM > coupon rate
Which of the following is known as the group of assets such as stocks and bonds held by an investor ?
A Stock Bundle
B Portfolio
C Capital Structure
D None of These
Correct Answer: Portfolio
Which of the following is the overall return the firm must earn on its existing assets to maintain the value of the stock?
A IRR (Internal Rate of Return)
B MIRR (Modified Internal Rate of Return)
C WACC (Weighted Average Cost of Capital)
D AAR (Average Accounting Return)
Correct Answer: WACC (Weighted Average Cost of Capital)
A series of constant cash flows that occur at the end of each period for some fixed number of periods is ____________ .
A an ordinary annuity
B annuity due
C multiple cash flows
D perpetuity
Correct Answer: an ordinary annuity
The DuPont Identity tells us that Return on Equity is affected by:
A The DuPont Identity tells us that Return on Equity is affected by:
B asset use efficiency (as measured by total assets turnover)
C financial Leverage (as measured by equity multiplier)
D all of the given options (a, b and c)
Correct Answer: all of the given options (a, b and c)
A standardized financial statement presenting all items of the statement as a percentage of total is:
A a common-size statement
B an income statemen
C a cash flow statement
D a balance sheet
Correct Answer: a common-size statement
Which of the following is the process of planning and managing a firm‟s long-term investments?
A Capital Structuring
B Capital Rationing
C Capital Budgeting
D Working Capital Management
Correct Answer: Capital Budgeting
The principal amount of a bond at issue is called____________?
A Par value
B Coupon value
C Present value of an annuity
D Present value of a lump sum
Correct Answer: Par value
The difference between current assets and current liabilities is known as____________?
A Surplus Asset
B Short-term Ratio
C Working Capital
D Current Ratio
Correct Answer: Working Capital
Which of the following equation is known as Cash Flow (CF) identity?
A CF from Assets = CF to Creditors – CF to Stockholder
B CF from Assets = CF to Stockholders – CF to Creditors
C CF to Stockholders = CF to Creditors + CF from Assets
D CF from Assets = CF to Creditors + CF to Stockholder
Correct Answer: CF from Assets = CF to Creditors + CF to Stockholder