Management Sciences MCQs
These Management Sciences MCQs are for public service commission exams and BBA, and MBA students to prepare for their examinations. All MCQs are prepared after having a look at past papers of public service commission examinations held from time to time. These Management Science questions are very important for all types of tests conducted by FPSC, NTS, KPPSC, PPSC, SPSC, BPSC, OTS, UTS, PTS, CTS, ATS, STS, ETEA, and other testing agencies of Pakistan.
A project whose cash flows are more than capital invested for rate of return then net present value will be___________?
A: Positive
B: Independent
C: Negative
D: Zero
Positive
In mutually exclusive projects, project which is selected for comparison with others must have____________?
A: Higher net present value
B: Lower net present value
C: Zero net present value
D: All of above
Higher net present value
Profitability index in capital budgeting is used for_________?
A: Negative projects
B: Relative projects
C: Evaluate projects
D: Earned projects
Evaluate projects
Relationship between Economic Value Added (EVA) and Net Present Value (NPV) is considered as____________?
A: Valued relationship
B: Economic relationship
C: Direct relationship
D: Inverse relationship
Direct relationship
In capital budgeting, term of bond which has great sensitivity to interest rates is______________?
A: Long-term bonds
B: Short-term bonds
C: Internal term bonds
D: External term bonds
Long-term bonds
Price earning ratio and price by cash flow ratio are classified as___________?
A: Marginal ratios
B: Equity ratios
C: Return ratios
D: Market value ratios
Market value ratios
High price to earning ratio shows companys_____________?
A: Low dividends paid
B: High risk prospect
C: High growth prospect
D: High marginal rate
High growth prospect
Process of comparing company results with other leading firms is considered as____________?
A: Comparison
B: Analysis
C: Bench marking
D: Return analysis
Bench marking
An equity multiplier is multiplied to return on assets to calculate_________?
A: Return on assets
B: Return on multiplier
C: Return on turnover
D: Return on stock
Return on assets
Company low earning power and high interest cost cause financial changes which have_____________?
A: High return on equity
B: High return on assets
C: Low return on assets
D: Low return on equity
High return on assets