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.
Which of the following is a special case of annuity, where the stream of cash flows continues forever?
A: Ordinary Annuity
B: Special Annuity
C: Annuity Due
D: Perpetuity
Perpetuity
Profitability index (PI) rule is to take an investment, if the index exceeds___________?
A: -1
C: 1
D: 2
1
Which of the following is the cheapest source of financing available to a firm?
A: Bank loan
B: Commercial papers
C: Trade credit
D: None of the given options.
Trade credit
_______________refers to the extent to which fixed-income securities (debt and preferred stock) are used in a firms capital structure?
A: Financial risk
B: Portfolio risk
C: Operating risk
D: Market risk
Financial risk
The use of Personal borrowing to alter the degree of financial leverage is called__________?
A: Homemade leverage
B: Financial leverage
C: Operating leverage
D: None of the given option
Homemade leverage
_________ refers to the most valuable alternative that is given up if a particular investment is undertaken?
A: Sunk cost
B: Opportunity cost
C: Financing cost
D: All of the given options
Opportunity cost
A model which makes an assumption about the future growth of dividends is known as:
A: Dividend Price Model
B: Dividend Growth Model
C: Dividend Policy Model
D: All of the given options
Dividend Growth Model
Which of the following is not a quality of IRR ?
A: Most widely used
B: Ideal to rank the mutually exclusive investments
C: Easily communicated and understood
D: Can be estimated even without knowing the discount rate
Ideal to rank the mutually exclusive investments
Which of the following is a series of constant cash flows that occur at the end of each period for some fixed number of periods?
A: Ordinary annuity
B: Annuity due
C: Perpetuity
D: None of the given options
Ordinary annuity
The conflict of interest between stockholders and management is known as:
A: Agency problem
B: Interest conflict
C: Management conflict
D: Agency cost
Agency problem