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.

A firm reports total liabilities of Rs. 300,000 and owner’s equity of Rs. 500,000. What would be the total worth of the firm’s assets?
A Rs. 300,000
B Rs. 500,000
C Rs. 800,000
D Rs. 1100,000
Correct Answer: Rs. 800,000
Which of the following statement is TRUE regarding debt?
A Debt is an ownership interest in the firm.
B Unpaid debt can result in bankruptcy or financial failure.
C Debt provides the voting rights to the bondholders.
D Corporation’s payment of interest on debt is fully taxable.
Correct Answer: Unpaid debt can result in bankruptcy or financial failure.
If you plan to save Rs. 5,000 with a bank at an interest rate of 8%, what will be the worth of your amount after 4 years if interest is compounded annually?
A Rs. 5,400
B Rs. 5,900
C Rs. 6,600
D Rs. 6,802
Correct Answer: Rs. 6,802
Which of the following statement about bond ratings is TRUE?
A Bond ratings are typically paid for by a company’s bondholders.
B Bond ratings are based solely on information acquired from sources other than the bond issuer.
C Bond ratings represent an independent assessment of the credit-worthiness of bonds.
D None of the given options
Correct Answer: Bond ratings represent an independent assessment of the credit-worthiness of bonds.
Which of the following ratios is NOT from the set of Asset Management Ratios?
A Inventory Turnover Ratio
B Receivable Turnover
C Capital Intensity Ratio
D Return on Assets
Correct Answer: Capital Intensity Ratio
A firm has paid out Rs. 150,000 as dividends from its net income of Rs. 250,000. What is the retention ratio for the firm?
A 12%
B 25%
C 40%
D 60%
Correct Answer: 40%
The most important item that can be extracted from financial statements is the actual ________ of the firm.
A Net Working Capital
B Cash Flow
C Net Present Value
D None of the given options
Correct Answer: Cash Flow
Which of the following statement is considered as the accountant’s snapshot of firm’s accounting value as of a particular date?
A Income Statement
B Balance Sheet
C Cash Flow Statement
D Retained Earning Statement
Correct Answer: Balance Sheet
When the market’s required rate of return for a particular bond is much less than its coupon rate, the bond is selling at:
A Premium
B Discount
C Par
D Cannot be determined without more information
Correct Answer: Premium
Mr. Y and Mr. Z are planning to share their capital to run a business. They are going to employ which of the following type of business?
A Sole-proprietorship
B Partnership
C Corporation
D None of the given options
Correct Answer: Partnership