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 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
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 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
Which of the following is the process of planning and managing a firmŸs long-term investments?
A: Capital Structuring
B: Capital Rationing
C: Capital Budgeting
D: Working Capital Management
Capital Budgeting
A standardized financial statement presenting all items of the statement as a percentage of total is:
A: a common-size statement
B: an income statemen
C: a cash flow statement
D: a balance sheet
a common-size statement
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