Chapter: Financial Management
201.

Which one of the following is the main source of income for educational organisation?

A. Fees from the students
B. Endowments and land grants
C. Donations
D. All of the above
Answer» D. All of the above
202.

Major factors that influences educational finance is

A. Removal of disparities in educational opportunities
B. Maintenance of normal service
C. Demand for education
D. Unemployment of youth
Answer» A. Removal of disparities in educational opportunities
203.

“Finance is the art and science of managing money”.Who says this?

A. Lawrence J. Gitman
B. Taylor
C. Hawthorne
D. Elton
Answer» A. Lawrence J. Gitman
204.

Which one of the following is not the objective of financial management?

A. To ensure human capital development
B. To ensure adequate returns to the shareholders
C. To ensure optimum fund utilisation
D. To ensure safety on investment
Answer» A. To ensure human capital development
205.

Financial management is concerned with

A. Profit and loss of the organisation
B. Procurement and utilisation of funds
C. Loan from banks
D. Exchange of money with other countries
Answer» B. Procurement and utilisation of funds
206.

Which one of the following is not a source of income for educational organisation?

A. Land grants and endowments
B. Government funds
C. Loan from State Bank of India
D. Fees from the students
Answer» C. Loan from State Bank of India
207.

The success of any business organisation depends on the

A. Knowledge of the workers
B. Provision of sufficient money
C. Geographical area
D. Road contributions
Answer» A. Knowledge of the workers
208.

The main source of income of the educational institution is received from

A. The Village Community
B. The United Nation
C. The State Government
D. The fee of students
Answer» D. The fee of students
209.

Under centralised management, authority and powers rest in a/an

A. Local body
B. Autonomous body
C. Central body
D. None of the above
Answer» C. Central body
210.

“Shareholder wealth” in a firm is represented by:

A. The number of people employed in the firm
B. The book value of the firm’s assets less the book value of its liabilities
C. The amount of salary paid to its employees
D. The market price per share of the firm’s common stock
Answer» D. The market price per share of the firm’s common stock
211.

The objective of financial management is to:

A. Maximize earnings per share
B. Maximize the value of the firm’s common stock
C. Maximize return on investment
D. Maximize market share
Answer» C. Maximize return on investment
212.

“Financial management is that activity of management which is concerned with the planning, procuring and controlling of the firm’s financial resources”. Who says this?

A. Weston and Brigham
B. J.F. Bradlery
C. Deepika& Maya Rani
D. Ezra Solomon
Answer» C. Deepika& Maya Rani
213.

“Financial management is an area of financial decision making, harmonizing individual motives and enterprise goals”. Who define this?

A. J.F. Bradlery
B. Ezra Solomon
C. Deepika& Maya Rani
D. Weston and Brigham
Answer» D. Weston and Brigham
214.

“Financial management is the area of business management devoted to a judicious use of capital and a careful selection of sources of capital in order to enable a business firm to move in the direction of reaching its goals” Who says this?

A. Guthman and Dougal
B. Weston and Brigham
C. J.F. Bradlery
D. Deepika& Maya Rai
Answer» C. J.F. Bradlery
215.

“Financial management is properly viewed as an integral part of overall management rather than as a staff specially concerned with funds raising operations”.

A. Deepika& Maya Rai
B. J.F. Bradlery
C. Guthman and Dougal
D. Ezra Solomon
Answer» C. Guthman and Dougal
216.

“The activity concerned with the planning, raising, controlling and administering of funds used in the business”. Who defines this?

A. Ezra Solomon
B. J.F. Bradlery
C. Guthman and Dougal
D. Weston Brigham
Answer» D. Weston Brigham
217.

The most common cause of financial problems are:

A. Undercapitalization
B. Inadequate expense control
C. Credit terms
D. All of the above
Answer» D. All of the above
218.

A statement that projects management’s expectations for revenues and, based on those financial expectations, allocates the use of specific resources throughout the firm is called:

A. Capital budget
B. Operating budget
C. Cash budget
D. Resource budget
Answer» D. Resource budget
219.

An example of fixed asset is

A. Live stock
B. Value stock
C. Income stock
D. All of the above
Answer» A. Live stock
220.

The total cost that arises when the quantity produced is increased by one unit is called

A. The number of people employed in the firm
B. The book value of the firm’s assets less the book value of its liabilities
C. The amount of salary paid to its employees
D. The market price per share of the firm’s common stock
Answer» B. The book value of the firm’s assets less the book value of its liabilities
221.

______ varies inversely with profitability.

A. Liquidity
B. Risk
C. Financing
D. Liabilities
Answer» A. Liquidity
222.

_________ of a firm refers to the composition of its long term funds and its capital structure.

A. Capitalisation
B. Over-capitalistion
C. Under-capitalisation
D. Market capitalisation
Answer» A. Capitalisation
223.

In finance, “working capital” means the same thing as

A. Total assets
B. Fixed assets
C. Current assets
D. Current assets minus current liabilities
Answer» C. Current assets
224.

Which of the following would be consistent with a more aggressive approach to financing working capital

A. Financing short term needs with short term funds
B. Financing permanent inventory build up with long term debt
C. Financing seasonal needs with short term funds
D. Financing some long term needs with short term funds
Answer» D. Financing some long term needs with short term funds
225.

Which of the following is not the responsibility of financial management?

A. Allocation of funds to current and capital assets
B. Obtaining the best mix of financing alternatives
C. Preparation of the firm’s accounting statements
D. Development of an appropriate dividend policy
Answer» C. Preparation of the firm’s accounting statements
226.

Uses of funds include a(an):

A. Decrease in cash
B. Increase in any liability
C. Tax refund
D. Increased in fixed assets
Answer» C. Tax refund
227.

A capital investment is one that

A. Has the prospect of long term benefits
B. Has the prospect of short term benefits
C. Is only undertaken by large corporations
D. Applies only to investment in fixed assets
Answer» A. Has the prospect of long term benefits
228.

Which one of the following factors that influence educational finance?

A. Demand for education
B. Financial control
C. Concentration of wealth
D. Level of national income
Answer» A. Demand for education
229.

The main problem of financing a scheme of post-secondary education that faced with serious difficulties

A. expansion of educational services
B. Removal of disparities in educational opportunities
C. Inadequacy of funds
D. None of the above
Answer» C. Inadequacy of funds
230.

Modern industrial development has caused________

A. Private enterprise
B. Economic imbalances
C. Social change
D. Economic contribution
Answer» B. Economic imbalances
231.

The control of________ is a very important problem because ‘power follows the purse’ and this power may be easily misused

A. Economy
B. Population
C. Government
D. Finance
Answer» D. Finance
232.

Economists believe in the law of diminishing marginal utility’. This ‘utility’ means

A. Ability
B. Efficiency
C. Satisfaction
D. Reduction
Answer» C. Satisfaction
233.

Efficiency can be much improved if there is only a________ planning.

A. Short term and long term
B. Short term
C. Long term
D. None of the above
Answer» C. Long term
234.

It has been decided that______ of schooling will be made available to majority of our youth

A. 12 years
B. 10 years
C. 5 years
D. None of the above
Answer» A. 12 years
235.

To solve the problem of mobility of population and overcrowding in the cities the government has to adopt

A. Appropriate measures both at the economic and educational levels
B. Evolving a new finance structure in which the Central government will have to play significant role
C. Maintenance of a high level of national income
D. Financing of education
Answer» A. Appropriate measures both at the economic and educational levels
236.

Which one is not educational finances needed for purposes in education?

A. Maintenance of normal educational services
B. Expansion of educational services
C. Expansion of disparities in educational opportunities
D. Planning, organising, directing and controlling the financial activities
Answer» D. Planning, organising, directing and controlling the financial activities
237.

The most important method used in Ancient and medieval times in financing education is

A. Land grants and income yielding endowmwnts
B. Learning while earning
C. Donation from the public
D. Government funds
Answer» A. Land grants and income yielding endowmwnts
238.

One of the following is not include in the important activities in the field of education undertaken by UNESCO

A. Centre for Educational Technology
B. Secondary School Teaching License Project
C. Organisation of meetings, seminars, workshops etc
D. Expansion of educational services
Answer» D. Expansion of educational services
239.

An important problem of social change, which cannot be solved by half-harted measures is

A. Unemployment of youth
B. Population mobility
C. Age distribution of population
D. Extension of educational opportunities
Answer» C. Age distribution of population
240.

Besides the provision for special education, ___________ will require additional adjustments in the policies of educational financing

A. Vocational education, professional training course etc
B. Financial resource
C. Distribution of funds
D. School fees
Answer» A. Vocational education, professional training course etc
Chapter: Managerial Behaviour
241.

Managerial Behaviour means the behaviour, attitude, personality traits, intelligence, etc of the -

A. teacher
B. manager
C. principal
D. head
Answer» B. manager
242.

The social qualities of a good administrator/ manager should comprise of –

A. social tact and good judgement
B. personal charm
C. sense of humour
D. all the above
Answer» D. all the above
243.

Educational Leadership is a term applied to –

A. principals or
B. administrators
C. department heads or academic deans
D. all the above
Answer» D. all the above
244.

Leadership style refers to the –

A. personality pattern of a leader
B. attitude pattern of a leader
C. behavior pattern of a leader
D. none of the above
Answer» C. behavior pattern of a leader
245.

When the leader expects complete obedience from his followers and all decision making power is concentrated in the leader, it is called –

A. Dictatorial style
B. Autocratic style
C. Monarchial style
D. none of the above
Answer» B. Autocratic style
246.

When freedom is allowed to subordinates and they are given free hand in deciding their own policies and methods and the leader rarely interferes, it is called –

A. Democratic style
B. Delegating Style
C. Laissez – faire style
D. Autocratic style
Answer» C. Laissez – faire style
247.

When a leader acts like a father to his sub-ordinates and protects and guides them, it is called –

A. Benevolent style
B. Paternalistic style
C. Participative style
D. Maternalistic style
Answer» B. Paternalistic style
248.

Theory X and Theory Y of Leadership style was proposed by –

A. Douglas McGregor
B. Hersey and Blanchard
C. Rensis Likert
D. None of the above
Answer» A. Douglas McGregor
249.

Rensis Likert proposed __________ leadership styles.

A. 4
B. 3
C. 5
D. 6
Answer» A. 4
250.

Achievement-Oriented style of leadership was given by –

A. Rensis Likert
B. Robert House
C. Hersey and Blanchard
D. Douglas McGregor
Answer» B. Robert House
251.

Managerial behaviour is mainly concerned with

A. strict control of subordinates
B. leading the members of the organization efficiently
C. obeying the boss
D. receiving bribes from others
Answer» B. leading the members of the organization efficiently
252.

The opposite of democratic leadership is

A. laissez faire leadership
B. permissive leadership
C. authoritarian leadership
D. creative leadership
Answer» C. authoritarian leadership
253.

The general functions of a manager include –

A. Leading
B. Planning
C. Problem Solving
D. all the above
Answer» D. all the above
254.

Leadership style is mainly the result of the -

A. philosophy of the leader.
B. personality of the leader.
C. experience of the leader.
D. all the above
Answer» D. all the above
255.

Personal characteristics of a good manager include -

A. good personal qualities
B. good qualifications
C. mentally healthy
D. all the above
Answer» D. all the above
256.

In order to be a successful manager, one has to be -

A. active and alert
B. hardworking and punctual
C. creative and democratic
D. all the above
Answer» D. all the above
257.

Resources available in an educational institution include -

A. human resources
B. material resources
C. capital resources
D. all the above
Answer» D. all the above
258.

For successful administrative leadership, one needs to possess -

A. intelligence and creativity
B. professional knowledge and skill
C. diagnosing and problem solving ability
D. all the above
Answer» D. all the above
259.

A good and effective manager should not be -

A. compassionate
B. egotistical
C. selfish
D. dictatorial
Answer» A. compassionate
260.

The best style of leadership is –

A. Autocratic style
B. Permissive style
C. Paternalistic style
D. Democratic style
Answer» D. Democratic style
261.

The two extremes of leadership style are -

A. Autocratic and Democratic style
B. Autocratic and Laissez-Faire style
C. Autocratic and Paternalistic style
D. Democratic and Laissez-Faire style
Answer» B. Autocratic and Laissez-Faire style
262.

When sub-ordinates are encouraged to take initiative and to participate in decision making, it is called -

A. Autocratic style
B. Permissive style
C. Democratic style
D. Directive style
Answer» C. Democratic style
263.

Path Goal Theory of Leadership was given by -

A. Rensis Likert
B. Douglas McGregor
C. Robert House
D. Hersey & Blanchard
Answer» C. Robert House
264.

Situational Theory of Leadership was given by -

A. Rensis Likert
B. Douglas McGregor
C. Robert House
D. Hersey & Blanchard
Answer» D. Hersey & Blanchard
265.

Which type of leader happens to be authoritarian, autocratic, task-oriented, rigid and strict?

A. X - style
B. Y - style
C. Z - style
D. None of the above
Answer» A. X - style
266.

Which type of leader happens to be supportive, democratic, participative and delegating?

A. X - style
B. Y - style
C. Z - style
D. None of the above
Answer» B. Y - style
267.

Telling style and Selling style of leadership was given by -

A. Hersey & Blanchard
B. Douglas McGregor
C. Robert House
D. Rensis Likert
Answer» A. Hersey & Blanchard
268.

The leadership styles given by Rensis Likert include –

A. Democratic, Participative, Benevolent and Exploitation styles
B. Autocratic, Democratic, Laissez – faire and Paternalistic styles
C. Telling, Selling, Participative and Delegating styles
D. Directive, Supportive, Participative and Achiement-oriented styles
Answer» A. Democratic, Participative, Benevolent and Exploitation styles
269.

The leadership styles given by Robert House include -

A. Autocratic, Democratic, Laissez – faire and Paternalistic styles
B. Democratic, Participative, Benevolent and Exploitation styles
C. Directive, Supportive, Participative and Achiement-oriented styles
D. Telling, Selling, Participative and Delegating styles
Answer» C. Directive, Supportive, Participative and Achiement-oriented styles
270.

The leadership styles given by Hersey and Blanchard include -

A. Telling, Selling, Directing and Delegating styles
B. Telling, Selling, Participative and Delegating styles
C. Telling, Selling, Directing and Controlling styles
D. Telling, Selling, Leading and Delegating styles
Answer» B. Telling, Selling, Participative and Delegating styles
271.

Telling followers what needs to be done and giving appropriate guidance along the way is known as -

A. Telling style
B. Directive style
C. Selling style
D. Supportive style
Answer» B. Directive style
272.

Setting challenging goals in work and expecting high standards and success is known as –

A. Laissex-faire style
B. Achievement – oriented style
C. Exploitation style
D. Benevolent style
Answer» B. Achievement – oriented style
273.

Which leadership style is most effective when followers are at a very low level of maturity?

A. Delegating style
B. Participative style
C. Telling style
D. Authoritarian style
Answer» C. Telling style
274.

Which leadership style is most effective when followers are at a very high level of maturity?

A. Selling style
B. Telling style
C. Directive style
D. Delegating style
Answer» D. Delegating style
275.

Which leadership style is best when the work is stressful, boring or hazardous?

A. Directive style
B. Delegating style
C. Supportive style
D. Benevolent style
Answer» C. Supportive style
276.

Which leadership style is the odd one out?

A. Democratic style
B. Participative style
C. Exploitative style
D. Supportive style
Answer» C. Exploitative style
277.

“Leadership is ultimately about creating a way for people to contribute to making something extraordinary happen”.Who said this?

A. D.R. Davies
B. Alan Keith
C. M. Chemers
D. Keith Davies
Answer» B. Alan Keith
278.

“Leadership is the ability to persuade others to seek defined objectives enthusiastically”. Who said this?

A. D.R. Davies
B. Alan Keith
C. M. Chemers
D. Keith Davies
Answer» D. Keith Davies
279.

“Leadership is the process of social influence in which one person can enlist the aid and support of others in the accomplishment of a common task”. Who said this?

A. D.R. Davies
B. Alan Keith
C. M. Chemers
D. Keith Davies
Answer» C. M. Chemers
280.

The factor which does not affect the managerial behaviour is

A. Personal factor
B. Social factor
C. Geographical factor
D. Political factor
Answer» C. Geographical factor
281.

Under decentralised management, all powers and responsibilities are distributed and shared by

A. Central body
B. Top to bottom
C. Local body
D. Autonomous body
Answer» A. Central body
282.

Opposite to autocratic leadership style is

A. Free-rein leadership style
B. Participative or democratic style
C. Employee-oriented style
D. Task oriented style
Answer» A. Free-rein leadership style
283.

Who named the two major types of leadership behaviour pattern as system oriented and person oriented

A. Fedler
B. Parson and Bales
C. Stogdill, Coins and Brown
D. Parson and Brown
Answer» C. Stogdill, Coins and Brown
284.

The term ‘manager’ points out to a person whois holding a managerial position such as

A. Vice Chancellor of a university
B. Principal of a college
C. Director of an institution
D. All of the above
Answer» D. All of the above
285.

A leader who gives orders only after consulting the group is called

A. Autocratic leader
B. Laissez-faire leader
C. Democratic leader
D. None of the above
Answer» C. Democratic leader
286.

The managerial behaviour is mainly

A. The preference for maintaining status quo
B. To control the subordinates strictly
C. To receive bribes from others
D. To obey the boss
Answer» A. The preference for maintaining status quo
287.

All decisions are centralised in

A. Democratic leadership
B. Laissez-faire leadership
C. Autocratic leadership
D. None of the above
Answer» C. Autocratic leadership
288.

Under centralised management, authority and powers rest in a/an

A. Local body
B. Central body
C. Autonomous body
D. None of the above
Answer» A. Local body
289.

Which of the following factors determines education allocation

A. Constitutional provision
B. National income
C. Proper motivation
D. Unity of demand
Answer» A. Constitutional provision
290.

The term manager, in fact, is a________ concept

A. Multi-meaning
B. Organisational
C. Managerial
D. Meaningful
Answer» A. Multi-meaning
291.

The variable determining the quality of managerial behaviour are

A. The manager himself
B. The persons with whom he works
C. The cultural accomplishments and setting of the workers
D. All of the above
Answer» D. All of the above
292.

What is one characteristic of a Laissez-faire leadership style?

A. Leader gives opinion only when asked
B. Leader takes charge
C. Everyone work together and participate together
D. None of the above
Answer» A. Leader gives opinion only when asked
293.

________ is increasing leadership rapidly

A. Strategy
B. Command
C. Getting others to follow
D. Control
Answer» D. Control
294.

Regarding leadership, which statement is false?

A. Leadership does not necessarily take place within
B. Hierarchical structure of an organisation
C. When people operate as leaders their role is alaways clearly established and defined
D. Not every leader is a manager
Answer» B. Hierarchical structure of an organisation
295.

According to leaders experts________, are what are called “action logics”.

A. Bill Torbert and David Rooke
B. Torbert and Susanne Cook-Greuter
C. Parson and Bales
D. None of the above
Answer» A. Bill Torbert and David Rooke
296.

_________ is one of the most effective leadership styles because it allows lower-level employees to exercise authority.

A. Strategic leadership
B. Autocratic leadership
C. Democratic leadership
D. Laissez-faire leadership
Answer» C. Democratic leadership
297.

Under_______ the leader tends to reject an employee’s input if it conflicts with company policy or past practices.

A. Bureaucratic leadership
B. Transformational leadership
C. Transactional leadership
D. Strategic leadership
Answer» A. Bureaucratic leadership
298.

A marketing team that receives a scheduled bonus for helping generate a certain number of leads by the end of the quarter is an example of

A. Democratic
B. Autocratic
C. Laissez-faire
D. Bureaucratic
Answer» B. Autocratic
299.

________ leadership is the least intrusive form of leadership

A. Democratic
B. Autocratic
C. Laissez-faire
D. Bureaucratic0
Answer» C. Laissez-faire
300.

Transformational leadership is always________ and improving upon the company’s conventions.

A. Transacting
B. Conformity
C. Depending
D. Transforming
Answer» D. Transforming
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