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.

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

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