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 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

A company having a current ratio of 1 will have __________ net working capital.

A Positive
B Negative
C zero
D None of the given options
Correct Answer: zero

Which of the following set of ratios is used to assess a business’s ability to generate earnings as compared to its expenses and other relevant costs incurred during a specific period of time?

A Liquidity Ratios
B Leverage Ratios
C Profitability Ratios
D Market Value Ratios
Correct Answer: Profitability Ratios

Which of the following is measured by profit margin?

A Operating efficiency
B Asset use efficiency
C Financial policy
D Dividend policy
Correct Answer: Operating efficiency

A portion of profits, which a company retains itself for further expansion, is known as:

A Dividends
B Retained Earnings
C Capital Gain
D None of the given options
Correct Answer: Retained Earnings

Quick Ratio is also known as_______________?

A Current Ratio
B Acid-test Ratio
C Cash Ratio
D Solvency Ratio
Correct Answer: Acid-test Ratio

Which of the following ratios are particularly interesting to short-term creditors?

A Liquidity Ratios
B Long-term Solvency Ratios
C Profitability Ratios
D Market Value Ratios
Correct Answer: Liquidity Ratios

In which type of market, new securities are traded?

A Primary market
B Secondary market
C Tertiary market
D None of the given options
Correct Answer: Primary market

Which of the following terms refers to the use of debt financing?

A Operating Leverage
B Financial Leverage
C Manufacturing Leverage
D None of the given options
Correct Answer: Financial Leverage

Standard Company had net sales of Rs. 750,000 over the past year. During that time, average receivables were Rs. 150,000. Assuming a 365-day year, what was the average collection period?

A 5 days
B 36 days
C 48 days
D 73 days
Correct Answer: 73 days