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.

High price to earnings ratio shows company’s_________?

A Low dividends paid
B High risk prospect
C High growth prospect
D High marginal rate
Correct Answer: High growth prospect

In internal rate of returns, discount rate which forces net present values to become zero is classified as__________?

A Positive rate of return
B Negative rate of return
C External rate of return
D Internal rate of return
Correct Answer: Internal rate of return

Set of projects or set of investments usually maximize firm value is classified as_________?

A Optimal capital budget
B Minimum capital budget
C Maximum capital budget
D Greater capital budget
Correct Answer: Optimal capital budget

Modified rate of return and modified internal rate of return with exceed cost of capital if net present value is____________?

A Positive
B Negative
C Zero
D One
Correct Answer: Positive

In capital budgeting, a negative net present value result in______________?

A Zero economic value added
B Percent economic value added
C Negative economic value added
D Positive economic value added
Correct Answer: Negative economic value added

Number of years forecasted to recover an original investment is classified as________?

A Payback period
B Forecasted period
C Original period
D Investment period
Correct Answer: Payback period

Process in which managers of company identify projects to add value is classified as__________?

A Capital budgeting
B Cost budgeting
C Book value budgeting
D Equity budgeting
Correct Answer: Capital budgeting

Project whose cash flows are sufficient to repay capital invested for rate of return then net present value will be_________?

A Negative
B Zero
C Positive
D Independent
Correct Answer: Zero

Other factors held constant, greater project liquidity is because of___________?

A Less project returns
B Greater project return
C Shorter payback period
D Greater payback period
Correct Answer: Shorter payback period

An internal rate of return in capital budgeting can be modified to make it representative of_________?

A Relative outflow
B Relative inflow
C Relative cost
D Relative profitability
Correct Answer: Relative profitability