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Business Administration MCQs Management

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1. Public Accountants generally perform these services: Income tax services, Management Advisory services, and independent auditing services
2. Identify the organization created by Congress to regulate security markets including flow of information from companies to public: SEC
3. Select the term that describes a cash distribution to a Corporation’s Stockholders: A dividend
4. Frederick Winslow Taylor work/book entitled the principles of Scientific Management is published, in: 1911
5. One of the most successful Industrialists and the father of Modern Personnel Management is:W. Taylor
6. Who has the major Contributions in the Theory of Bureaucracy: Max Weber
7. Which one, of the following MNCs (Multinational Co.) has the higher revenues during mid. 1990s: (a) General Motor (b) IBM (c) AT &T (d) General Electric (e) None of the above
8. Give the, name of the author who has the major contributions in the field of marketing:J. Stanton
9. The profit margin is a ratio between the corporation’s net income and: Total revenues
10. MNCs are responsible for the majority of Foreign Direct Investment (FDIs) and have a higher revenues than the national income of some of the countries they serve: Fully agreed (Business Administration MCQs Management)
11. Earned but uncollected revenues, that are recording the adjusted process, recorded with a credit to the revenues and debit to the expense is called: Accrued revenues
12. Which one of the following is not a part/variable of the marketing Mix (4Ps): Person
13. The major steps in the accounting cycle are the following: The procedure used in worksheet
14. Which of the following items is not unique to the financial statements of merchandising Companies? (a) Cost of goods sold (b) Gross profit (c) Account receivable (d) Net sales (e) All of the above (f) None
15. The repairs made to keep a plant/asset in normal and good operating condition are called: Ordinary repairs
16. A company that owns more than 50’s of another company and controls that corporation is known as: Consolidated CO.
17. The process of individual growth in the full utilization of a person’s managerial capabilities is called management development: True
18. Promotion is not a part of marketing: Not agreed
19. A way of analyzing leadership style where leaders are classified on a grid with TWO dimensions is called: Managerial grid
20. Robert Owen is known as the Father of Modern Personnel Management: No
21. Most preferred stock pays a fixed dividend at regular intervals. True
22. Any increase in an asset item is a source of funds. True
23. Depreciation is a book-keeping entry that allocates the cost of assets against income but does not involve any movement of capital. False
24. The maturity of a security relates to the owner’s ability to convert it into cash on short notice: True
25. The credit period represents the period of time during which a cash discount can be taken on short notice. False
26. Which ratio is computed with the help of the following?
    Cost of goods sold/Inventory? Inventory Turnover
27. ________ is the right that is delegated to an individual or a department to control specific processes, practices, policies and other matters relating to activities undertaken by person in other departments. Delegated authority
28. Decentralization is the tendency to disperse decision making in an organized structure: True
29. Programmes are plans which are general statements or understandings that guide or channel thinking in decision making: True
30. _______ is that part of managing that involves establishing an international structure of roles for people to fill in an organization: staffing
31. Henri Fayol applied the principle of ‘Division of Work’ to all kinds of work, managerial as well as technical. True
32. ________ Spell out specific required actions or non-actions, allowing no discretion: Procedures
33. Business buyers are as geographically dispersed as final consumers. False
34. The distribution between a consumer good and an industrial good is based on the purpose for which product is purchased: True
35. Intensive distribution occurs when the product is stocked in as many outlets as possible. True
36. Merchant wholesalers are independently owned business that do not own (take title to) the goods they sell: False(merchant wholesalers take legal ownership of the goods they sell)
37. Which of the following elements in a compensation package provides the greatest amount of incentive for salespersons? Commissions
38. The process whereby the seller distinguishes between market segments, selects one or more of these segments, and develops products and marketing-mixes tailored to each segment is called _______ marketing. Target
39. Goods that the consumer, in the process of selection and purchase, characteristically compares on such bases as suitability, quality, price and style are called _______ goods. Shopping
40. Product ______ is a period of rapid market acceptance and increasing profits. Growth
41. Business risk is influenced by the firm’s decision to use debt in its financial structure. False
42. The most important function of management is controlling. False
43. A short term creditor would consider liquidity ratios to be more important than efficiency ratios. True
44. According to Maslow, when a need is satisfied, it tends to lose its ability to motivate. True
45. The term marketing mix refers to the degree of advertising Vs personal selling used to market product. False
46. The difference between an agent and a merchant wholesaler is that an agent always takes title but a merchant wholesaler does not. False
47. The management of working capital is required because of a lack of short term synchronization between demand and supply. True
48. A manager who believes that people inherently dislike work probably accepts McGregor’s Theory X. True
49. Inventory carrying costs can be minimized by carrying fewer units in inventory. True
50. A balance sheet is an accounting report used solely for the corporate form of business. False
51. For management, budgeting is perhaps the most powerful_____. Forecasting tool
52. The income statement is a summary of: Assets, liabilities and capital
53. One benefit of using ratio analysis when interpreting financial statements is that: Ratios facilitate comparisons between different companies.
54. Planting and policy making are primarily functions of: Top management
55. An informal organization often exists within a business because: (a) Not all relationships can be specifically defined. (b) Small organizations do not necessarily emphasize strict adherence to line authority. (c) Human behavior naturally crosses established authority lines. (d) All of these
56. Institutional advertising is: Designed simply to show that the firm is a good place to do business.
57. The current ratio of a firm having Rs. 25,000 of current assets, Rs. 30,000 of fixed assets, Rs. 5000 of current liabilities and Rs. 10,000 of fixed liabilities would be: 5:1
58. The organizational form that replaces individual authority at all levels with group representation is: Line and staff
59. Working Capital may be expressed as: Current assets over current liabilities
60. In a large corporation, the firm’s owners are usually its top managers. False (stockholders)
61. The operating break-even point is the point at which operating profits equal revenues minus operating costs.False
62. A sinking fund is a poorly performing mutual fund whose net asset value is declining. True
63. Penetration Pricing is used when a marketer introduces a new product at a relatively high price. False
64. The most common channel for consumer products is manufacturer-retailer-consumer. True
65. In the classification of consumer products, convenience products are usually more expensive than shopping products. False
66. During the maturity stage of the PLC, sales increase at faster rate than during any other stage.False
67. A wide span of management results in few organizational levels, and a narrow span results in many levels. True
68. The LINE relationship involves making decisions and acting on them. True
69. Data is defined as “formal system of gathering, integrating, comparing, analyzing, and dispersing information internal and external to the enterprise in a timely, effective and efficient manner”. True
70. A manager who believes that people inherently dislike work probably accepts McGregor’s Theory X. True
71. If a manufacturer gives a 30 percent discount to retailers and a 10 percent discount to wholesalers, which type of discount is being given? Functional(also called trade discount)
72. Publicity differs from advertising in as much as: It is a non paid Form of reaching the public.
73. In which stage of the PLC are promotion expenses per product item usually highest? Introduction
74. Which of the following is not a disadvantage of using a Committee? Group deliberation and judgment
75. Identify the Organization established by our Federal government to regulate security markets: SEC
76. If the credit terms are 2/10, net 30 and the amount of invoice is Rs. 4000, how much is the discount if the invoice is paid in 20 days? (for example, the term 2/10, net 30 allows a customer to deduct 2% of the net amount owed if the customer pays within 10 days of the invoice date. If a customer does not pay within the discount period of 10 days, the net purchase amount (without the discount) is due 30 days after the invoice date.) Zero
77. Which of the following is not part of the promotion-mix? Product planning
78. Selling activities include: Closing the sale
79. Planning initiates other functions of management. True
80. Managements make things to happen. True
81. The ultimate criterion of control is the extent that activities are complete in ways that lead to more profits. False
82. Computer Technology helps the management but does not replace the management. True
83. Promotional mix is also known as communication mix. True
84. Marketing environment is made up of micro-environment and macro-environment. True
85. Promotional mix is the part of marketing mix. True
86. Marketing strategy consists of specific strategy for target markets, positioning, the marketing mix and marketing expenditure levels. True
87. A Financial manager has a full control over its firm’s stock price. False
88. Liquidity ratios measure a firm’s ability to meet short term obligations. True
89. Stock exchange facilitates investment in real assets by providing secondary market to the financial securities.True
90. The organizing function of management includes: How tasks to be grouped.
91. The key to motivating today’s diversified work force lies in: Goal setting
92. Control should be placed: On all activities
93. The marketing logic by which the business unit hopes to achieve its marketing objective is called: Marketing strategy
94. Strategic planning is the process of developing a formal strategy for: (a) Identifying clear objectives (b) Long run survival & growth (c) Continuity & Consistency (d) All of these
95. Who are the true owners of Corporation? Common stock holders
96. What does an efficient port folio provide? Highest possible return and least amount of risk
97. The economic order quaintly (ECQ) increases when which of the following increases? Carrying costs
98. The key inputs into Discounted Cash Flow analysis are projected future cash flows. True
99. Market demand for a product is the total volume that would be sold by a defined customer group. False
100. Operational plans apply to the entire organization and establish the organization’s overall goals. False (Business Administration MCQs updated)
101. Preferred stock has a fixed divided paid every period forever so preferred stock is essentially a perpetuity. True
102. The cost of debt is the return that the firm’s debtors demand on new borrowing. True
103. With the Internal Rate of Return, we try to find a single rate of return that summarizes the merits of a project. True
104. IBM is example of a manufacturer brand. True
105. Modifying job responsibilities is an example of structural change. True
106. ———- is a statement reporting the effects of a firm’s operating, investing and financing activities on cash flows over an accounting period. Cash flow statement
107. ———- studied five chief executives at work and identified ten managerial roles. Henry fayol
108. A product life cycle —————–. Shows how a product sales or profits may rise or fall over its life
109. All of the following are fixed assets except Stocks
110. What is the influencing environmental factor when interest rates increase and firms find it difficult to borrow funds? Economic factor
111. Which of the following is not a market entry strategy International marketing
112. ———— is information about physical working conditions, work schedule and the organizational and social context of the job. a. Job specification b. Job context c. Work activities d. HR policy manual None of these
113. The liquidity of a firm is a measure of ————— Its ability to pay bills
114. Market share means ————— How much power affirm has in the market
115. ————– refers to a management philosophy that requires employers to continuously set and relentlessly meet ever high quality, cost, delivery and availability goals. Management by objective
116. Beta ————. Is a measure of market risk
117. What is the price of a stock that is expected to pay a 1.00 divided next year if the cost of capital is 14% and the growth rate is zero. 14
118. You wish to borrow $ 8000 to be repaid in 24 monthly installments at an annual interest rate of 8%. What is your monthly payment? $ 361.82
119. If you invest $ 600 every six months at 8% compounded semi annually, how much would you accumulate at the end of 10 years? $ 17, 866.85
120. A commercial bank will loan you $ 12,250 for three years to by a car. The loan must be repaid in 36 equal monthly payments. The annual interest rate on the loan is 12% of the unpaid balance. How large are the monthly payments?
     a) $425.00 b) $350.67 c) $375.09 d) $406.88 e)none
121. What is the future value of $500 investment, with a stated rate of 6% compounded monthly for 7 years. 760
122. You are considering investing in a preferred stock that has a dividend of $ 3.25 per share. The market price of this stock is $ 48.625. What is the rate of return you would expect to make on this perpetuity?68%
123. What is not a disadvantage of traditional file processing system? Program-data dependence
124. An enterprise data model is a (n) _______ model. Graphical
125. Which is not a component of relational database? Hierarchy
126. Data base application can be divided into 5 categories. which is NOT a database application category? Personal
127. A data base that supports organization wide operations and decision making is a (n) ________ database. Enterprise
128. As small companies begin to achieve success, they ten to adopt some of the tools used in professionally run marketing commas. This is a sign that the firm is in the ________ stage of marketing practice. formulated marketing
129. The concept of a _______ is used to describe a cluster of complementary products that are closely related in the minds of the consumers but are spread across a diverse set of industries. Metamediary
130. Marketers can increase the value of customers offering by: a) raising benefits and reducing cost b) raising benefits by more than raising the cost c) lowering benefits by less than the reduction in cost d) All of the above can increase the customers value
131. When a firm sees its competitors as all companies that compete for the same consumer dollars, they are concerned with the ________ level of competition. Industry
132. The number of channel levels from raw material to final product which a company will participate defines the firm’s _________ scope. Vertical
133. Which of the following best describes the organizational members who integrate and coordinate the work of others? Managers
134. _________ represent the lowest level of management First line managers
135. Which of the following roles is more important for lower-level managers than for either middle or top-level managers? a) Negotiator b) Leader c) Coordinator d) Entrepreneur e)none
136. Which of the following skills involve working well with other people? Human
137. The phrase most associated with scientific management is ________? quality control

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