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.

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

Cash flows occurring with more than one change in sign of cash flow are classified as________?

A Non-normal cash flow
B Normal cash flow
C Normal costs
D Non-normal costs
Correct Answer: Non-normal costs

If net present value is positive, then profitability index will be__________?

A Greater than two
B Equal to
C Less than one
D Greater than one
Correct Answer: Greater than one

Sum of discounted cash flows is best defined as____________?

A Technical equity
B Defined future value
C Project net present value
D Equity net present value
Correct Answer: Project net present value

Cash outflows are costs of project and are represented by___________?

A Negative numbers
B Positive numbers
C Hurdle number
D Relative number
Correct Answer: Negative numbers

In large expansion programs, increased riskiness and flotation cost associated with project can cause_______________?

A Rise in marginal cost of capital
B Fall in marginal cost of capital
C Rise in transaction cost of capital
D Rise in transaction cost of capital
Correct Answer: Rise in marginal cost of capital

Reinvestment risk of bonds is higher on__________?

A Short maturity bonds
B High maturity bonds
C High premium bonds
D High inflated bonds
Correct Answer: Short maturity bonds

Type of bonds that pays no coupon payment but provides little appreciation are classified as______________?

A Depreciated bond
B Interest bond
C Zero coupon bond
D Appreciation bond
Correct Answer: Zero coupon bond

Bonds issued by small companies tend to have_____________?

A High liquidity premium
B High inflation premium
C High default premium
D High yield premium
Correct Answer: High liquidity premium

Coupon rate of bond is also called____________?

A Nominal rate
B Premium rate
C Quoted rate
D Both a and c
Correct Answer: Both a and c