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.

In capital budgeting, an internal rate of return of project is classified as its__________?

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

An uncovered cost at start of year is divided by full cash flow during recovery year then added in prior years to full recovery for calculating__________?

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

Return on assets = 6.7% and equity multiplier = 2.5% then return on equity will be ______________?

A 16.75%
B 2.68%
C 0.37%
D 9.20%
Correct Answer: 16.75%

Low price for earnings ratio is result of________________?

A Low riskier firms
B High riskier firms
C Low dividends paid
D High marginal rate
Correct Answer: Low riskier firms

Long-term equity anticipation security is usually classified as__________?

A Short-term options
B Long-term options
C Short money options
D Yearly call
Correct Answer: Long-term options

An option that gives investors right to sell a stock at predefined price is classified as____________?

A Put option
B Call option
C Money back options
D Out of money options
Correct Answer: Put option

An increase in value of option leads to low present value of exercise cost only if it has____________?

A Low volatility
B Interest rates are high
C Interest rates are low
D High volatility
Correct Answer: Interest rates are high

In financial planning, most high option price will lead to__________?

A Longer option period
B Smaller option period
C Lesser price
D Higher price
Correct Answer: Longer option period

An investor who writes stock call options in his own portfolio is classified as__________?

A Due option
B Covered option
C Undue option
D Uncovered option
Correct Answer: Covered option

An investor who buys shares and writes a call option on stock is classified as__________?

A Put investor
B Call investor
C Hedger
D Volatile hedge
Correct Answer: Hedger