McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Master of Business Administration (MBA) .
| 51. |
Management by objective is the process in which |
| A. | Top management sets objectives for the sub- ordinate managers |
| B. | Budgeteer proposes to accomplish specific jobs and prepares budget for it. |
| C. | A manager decides his own area of operations and prepares budget for it. |
| D. | Budget is not prepared at all. |
| Answer» B. Budgeteer proposes to accomplish specific jobs and prepares budget for it. | |
| 52. |
Return on Assets (ROA) ratio is given by which of the following? |
| A. | Net Income/ Sales |
| B. | Sales / Total Assets |
| C. | Net Income/ Total Assets |
| D. | Gross Margin/ Net Sales |
| Answer» C. Net Income/ Total Assets | |
| 53. |
The Strategic Business Unit evolved during the ……………………… |
| A. | 1970s & 1980s |
| B. | 1990s |
| C. | 1960s |
| D. | 21st Century |
| Answer» A. 1970s & 1980s | |
| 54. |
The strategic Business Unit evolved from ………………… |
| A. | Hierarchy- based structure of organization |
| B. | Function based structure of organization |
| C. | Territorial structure of organization |
| D. | Divisional structure of organization |
| Answer» D. Divisional structure of organization | |
| 55. |
There are four elements of Anthony’s model. Which one does not belong to the group? |
| A. | Detector |
| B. | Assessor |
| C. | Effecter |
| D. | Rejecter |
| Answer» D. Rejecter | |
| 56. |
Total control over discretionary expense center is achieved primarily through ……… performance measures. |
| A. | Financial |
| B. | Non-financial |
| C. | Objective based |
| D. | Output based |
| Answer» B. Non-financial | |
| 57. |
Which of the following areas is not covered under the Baldrige Award? |
| A. | Education |
| B. | Health Care |
| C. | Small Business |
| D. | Multi National Corporation (MNC) |
| Answer» D. Multi National Corporation (MNC) | |
| 58. |
Which of the following is an example of lead indication? |
| A. | Market share |
| B. | Net profit |
| C. | Gross margin |
| D. | ROI |
| Answer» A. Market share | |
| 59. |
If project A has a lower payback period than project B, this may indicate that project A may have a ……………. |
| A. | Lower NPV and be less profitable |
| B. | Higher NPV and be less profitable |
| C. | Higher NPV and be more profitable |
| D. | Lower NPV and be more profitable |
| Answer» C. Higher NPV and be more profitable | |
| 60. |
The primary capital budgeting method that uses discounted cash flow techniques is the …….... |
| A. | Net present value method |
| B. | Cash payback technique |
| C. | Annual rate of return method |
| D. | Profitability index method |
| Answer» A. Net present value method | |
| 61. |
Which of the following ignores the time value of money? |
| A. | Internal rate of return |
| B. | Profitability Index |
| C. | Net present value |
| D. | Cash payback |
| Answer» D. Cash payback | |
| 62. |
Which of the following is not true? Asset employed is equal to |
| A. | Non-current liabilities + shareholder’s equity |
| B. | Total assets – current liabilities |
| C. | Non-current assets + working capital |
| D. | Shareholder’s equity –current liabilities |
| Answer» D. Shareholder’s equity –current liabilities | |
| 63. |
As asset becomes Non Performing after default of …………………… |
| A. | 180 days |
| B. | 60 days |
| C. | 90 days |
| D. | 91 days |
| Answer» C. 90 days | |
| 64. |
As per the RBI guidelines banks have to make sure that out of their loan assets loans are given to Priority Sector. |
| A. | 20% |
| B. | 40% |
| C. | 50% |
| D. | 45% |
| Answer» B. 40% | |
| 65. |
The capital adequacy ratio to be maintained by public sector banks in India is …………….... |
| A. | 8% |
| B. | 10% |
| C. | 10.5% |
| D. | 12% |
| Answer» D. 12% | |
| 66. |
The Retailer is selling the merchandise for more than it costs the Retailer to acquire it, then the GMROI Ratio would be …………………… |
| A. | Higher than 1 |
| B. | Equal to 1 |
| C. | Less than 1 |
| D. | Equal to 3.2 |
| Answer» A. Higher than 1 | |
| 67. |
Which of the following do not fall under Financial inclusion ? |
| A. | Nationalization of Banks |
| B. | Public Sector Lending targets |
| C. | Zero Balance Accounts |
| D. | Education at affordable cost |
| Answer» D. Education at affordable cost | |
| 68. |
While calculating the Gross Margin Ratio on Investment (GMROI), the TWO important aspects are: |
| A. | Stock on Hand and Stock-Outs incidents |
| B. | Gross Margin and Average Inventory Cost |
| C. | Gross Revenue and Stock on Hand |
| D. | Carrying Costs and Stock-Out Costs |
| Answer» B. Gross Margin and Average Inventory Cost | |
| 69. |
Assembling project team and assigning their responsibilities are done during which phase of project management? |
| A. | Project Planning |
| B. | Project Initiation |
| C. | Project Controlling |
| D. | Project Execution |
| Answer» B. Project Initiation | |
| 70. |
PERT is the |
| A. | Time oriented technique |
| B. | Event oriented technique |
| C. | Activity oriented technique |
| D. | Target oriented technique |
| Answer» B. Event oriented technique | |
| 71. |
Which of the following is not one of the eight specific principles of Social Audit? |
| A. | Comprehensive |
| B. | Comparative |
| C. | Multi-directional |
| D. | Non-Participatory |
| Answer» D. Non-Participatory | |
| 72. |
Which of the following statement about NPOs is not true? |
| A. | The NPOs generally tend to be service organisations |
| B. | The NPOs receive ‘Contributed Capital’ and have no shareholders |
| C. | The sources of funds for NPOs are more or less captive |
| D. | The NPOs are subjected to Market Mechanism |
| Answer» D. The NPOs are subjected to Market Mechanism | |
| 73. |
Which is not a primary objective of audit? |
| A. | Detection and Prevention of Errors |
| B. | Examining the System of internal check |
| C. | Verifying the authenticity and validity of transactions |
| D. | Confirming the existence and value of assets and liabilities |
| Answer» A. Detection and Prevention of Errors | |
| 74. |
Which of the following area is not covered by management audit? |
| A. | System and Procedures |
| B. | Board’s / Directors Analysis |
| C. | Research and development |
| D. | New product development cycle time |
| Answer» D. New product development cycle time | |
| 75. |
Which of the following area is specially covered by Management Audit? |
| A. | Economic Contribution Analysis |
| B. | Cost-Benefit Analysis |
| C. | Social Cost-Benefit Analysis |
| D. | Sensitivity Analysis |
| Answer» A. Economic Contribution Analysis | |
| 76. |
Assuming that it is not the first appointment of the auditor, who is responsible for the appointment of the auditor? |
| A. | The Shareholders in a general meeting |
| B. | The Managing director |
| C. | The board of directors in board meeting |
| D. | The audit committee |
| Answer» A. The Shareholders in a general meeting | |
| 77. |
A Balanced Scorecard helps the organisation to: |
| A. | Be ready and prepared to implement an ERP |
| B. | Be focus on all the relevant business perspectives |
| C. | Integrate strategy and key challenges |
| D. | Communicate better with staff |
| Answer» B. Be focus on all the relevant business perspectives | |
| 78. |
A cost center manager |
| A. | Does not have the ability to produce revenue |
| B. | May be involved with the sale of new marketing programs to clients. |
| C. | Would normally be held accountable for producing an adequate return on invested capital. |
| D. | Often oversees divisional operations |
| Answer» A. Does not have the ability to produce revenue | |
| 79. |
According to DuPont analysis, increase in the profit margin (all else constant) should |
| A. | Increase both ROE and ROA |
| B. | Increase ROE but not ROA |
| C. | Increase ROA but not ROE |
| D. | Increase neither ROA nor ROE |
| Answer» A. Increase both ROE and ROA | |
| 80. |
DU PONT Analysis deals with |
| A. | Analysis of Current Assets |
| B. | Analysis of Profit |
| C. | Capital Budgeting |
| D. | Analysis of Fixed Assets |
| Answer» B. Analysis of Profit | |
| 81. |
If return on investment is a measure used on the balanced scorecard, under which perspective would it be listed |
| A. | Financial perspective |
| B. | Customer perspective |
| C. | Learning and growth perspective |
| D. | Internal business perspective |
| Answer» A. Financial perspective | |
| 82. |
Pitfalls exists the same as with any new technology or management tool. All of the following describe these pitfalls except |
| A. | Some companies use too few measures in their score |
| B. | Some companies include too many measures |
| C. | A poor scorecard is the biggest threat and one of the dangerous pitfalls |
| D. | Some companies do not know how to implement the effective drivers of performance |
| Answer» C. A poor scorecard is the biggest threat and one of the dangerous pitfalls | |
| 83. |
Responsibility centers include |
| A. | Adjustment centers |
| B. | Call centers |
| C. | Exam centers |
| D. | Profit center |
| Answer» D. Profit center | |
| 84. |
Responsibility reports for cost centers |
| A. | Distinguish between fixed and variable costs |
| B. | Use static budget data |
| C. | Include both controllable and non-controllable costs |
| D. | Include only controllable costs |
| Answer» D. Include only controllable costs | |
| 85. |
Return on Investment may be improved by one of these |
| A. | Increasing Turnover |
| B. | increasing Expenses |
| C. | decreasing Capital Utilization |
| D. | over budgeting |
| Answer» A. Increasing Turnover | |
| 86. |
ROI can be viewed as a function of the net profit margin times |
| A. | Sales. |
| B. | EAT. |
| C. | The total asset turnover |
| D. | Equity multiplier |
| Answer» C. The total asset turnover | |
| 87. |
The Balanced Scorecard approach has been criticized for leaving out certain measures. One of these is: |
| A. | Financial measures |
| B. | Employee satisfaction measures |
| C. | Customer satisfaction measures |
| D. | Technological innovation measures |
| Answer» B. Employee satisfaction measures | |
| 88. |
The drive in world markets to produce superior goods has led some countries to recognize or award prizes. What is the name of U.S. prize for developing quality products: |
| A. | the Deming Prize |
| B. | Malcolm Baldridge National Quality Award |
| C. | the J.D. Power Award |
| D. | the K.C. Irving Quality Award |
| Answer» B. Malcolm Baldridge National Quality Award | |
| 89. |
The following are basic elements in which Continuous Improvement framework (leadership; planning; service orientation; information and analysis; employees and workplace climate; process management; excellence levels and trends |
| A. | Six Sigma |
| B. | Total Quality Management (TQM) |
| C. | Zero Defect |
| D. | Malcolm Baldridge Quality Award |
| Answer» D. Malcolm Baldridge Quality Award | |
| 90. |
What is a measure of operating performance that indicates how successful the firm has been at increasing its MVA in a given year. |
| A. | Economic value added (EVA) |
| B. | After-tax cash flow (ATCF) |
| C. | Earnings after taxes (EAT) |
| D. | Market value added (MVA) |
| Answer» A. Economic value added (EVA) | |
| 91. |
What is not included in a firm’s expenses? |
| A. | Costs of goods sold |
| B. | Depreciation |
| C. | Interest expense |
| D. | Dividends |
| Answer» D. Dividends | |
| 92. |
What is the term used to describe the value assigned to the goods or services sold or rented from one unit of an organization to another |
| A. | Variable cost |
| B. | Fixed cost |
| C. | Transfer price |
| D. | Full service cost |
| Answer» C. Transfer price | |
| 93. |
When managers of subunits throughout an organization strive to achieve the goals set by top management, the result is |
| A. | Goal congruence |
| B. | Planning and control |
| C. | Responsibility accounting |
| D. | Delegation of decision making |
| Answer» A. Goal congruence | |
| 94. |
Which of the following statements about performance management systems is not true? |
| A. | Performance management systems are ineffective |
| B. | They encourage a short-term view among managers |
| C. | Recommendations are prescriptive and suggest one best way |
| D. | They improve organisational performance in the long-term |
| Answer» D. They improve organisational performance in the long-term | |
| 95. |
Which transfer pricing method will preserve the subunit autonomy? |
| A. | Variable-cost pricing |
| B. | Negotiated pricing |
| C. | Cost-based pricing |
| D. | Full-cost pricing |
| Answer» B. Negotiated pricing | |
| 96. |
Controllable costs, as used in a responsibility accounting system, consist of: |
| A. | Only fixed costs. |
| B. | Only direct materials and direct labor. |
| C. | Those costs that a manager can influence in the time period under review. |
| D. | Those costs about which a manager has some knowledge. Those costs that are influenced by parties external to the organization. |
| Answer» C. Those costs that a manager can influence in the time period under review. | |
| 97. |
Evaluation of Capital Budgeting Proposals is based on Cash Flows because: |
| A. | Cash Flows are easy to calculate |
| B. | Cash Flows are suggested by SEBI |
| C. | Cash is more important than profit |
| D. | None of the above |
| Answer» C. Cash is more important than profit | |
| 98. |
Sale of machine of machine merchandising business is – |
| A. | Capital receipt |
| B. | Capital income |
| C. | Revenue income |
| D. | Revenue receipt |
| Answer» D. Revenue receipt | |
| 99. |
What do we call a formal comparison of the actual costs and benefits of a project with original estimates? |
| A. | Post-completion audit |
| B. | Feedback audit |
| C. | Cost-benefit analysis |
| D. | Business scorecard report |
| Answer» A. Post-completion audit | |
| 100. |
Compliance with the Standard of Auditing is the responsibility of |
| A. | Management |
| B. | Those charged with governance |
| C. | Auditor |
| D. | Audit committee |
| Answer» C. Auditor | |
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