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 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
Which of the following relationships holds TRUE if a bond sells at a discount?
A: Bond Price < Par Value and YTM > coupon rate
B: Bond Price > Par Value and YTM > coupon rate
C: Bond Price > Par Value and YTM < coupon rate
D: Bond Price < Par Value and YTM < coupon rate
Bond Price < Par Value and YTM > coupon rate
Which of the following strategy belongs to restrictive policy regarding size of investments in current assets?
A: To maintain a high ratio of current assets to sales
B: To maintain a low ratio of current assets to sales
C: To less short-term debt and more long-term debt
D: To more short-term debt and less long-term debt
To maintain a low ratio of current assets to sales
The DuPont Identity tells us that Return on Equity is affected by:
A: The DuPont Identity tells us that Return on Equity is affected by:
B: asset use efficiency (as measured by total assets turnover)
C: financial Leverage (as measured by equity multiplier)
D: all of the given options (a, b and c)
all of the given options (a, b and c)
A series of constant cash flows that occur at the end of each period for some fixed number of periods is ____________ .
A: an ordinary annuity
B: annuity due
C: multiple cash flows
D: perpetuity
an ordinary annuity
Which of the following is the overall return the firm must earn on its existing assets to maintain the value of the stock?
A: IRR (Internal Rate of Return)
B: MIRR (Modified Internal Rate of Return)
C: WACC (Weighted Average Cost of Capital)
D: AAR (Average Accounting Return)
WACC (Weighted Average Cost of Capital)
Which of the following is known as the group of assets such as stocks and bonds held by an investor ?
A: Stock Bundle
B: Portfolio
C: Capital Structure
D: None of these
Portfolio
The principal amount of a bond at issue is called____________?
A: Par value
B: Coupon value
C: Present value of an annuity
D: Present value of a lump sum
Par value