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.

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
Situation in which firm limits expenditures on capital is classified as________?
A Optimal rationing
B Capital rationing
C Marginal rationing
D Transaction rationing
Correct Answer: Capital rationing