

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.
According to Black Scholes model, stocks with call option pays the__________?
A: Dividends
B: No dividends
C: Current price
D: Past price
No dividends
A type of beta which incorporates about company such as changes in capital structure is classified as___________?
A: Industry Beta
B: Market Beta
C: Subtracted Beta
D: Fundamental Beta
Fundamental Beta
Return on assets = 6.7% and equity multiplier = 2.5% then return on equity will be ______________?
A: 16.75%
B: 2.68%
C: 0.37%
D: 9.20%
16.75%
An uncovered cost at start of year is divided by full cash flow during recovery year then added in prior years to full recovery for calculating__________?
A: Original period
B: Investment period
C: Payback period
D: Forecasted period
Payback period
In capital budgeting, an internal rate of return of project is classified as its__________?
A: External rate of return
B: Internal rate of return
C: Positive rate of return
D: Negative rate of return
Internal rate of return
In capital budgeting, number of non-normal cash flows have internal rate of returns are____________?
A: One
B: Multiple
C: Accepted
D: Non-accepted
Multiple
Bond which is offered below its face value is classified as______________?
A: Present value bond
B: Original issue discount bond
C: Coupon issued bond
D: Discounted bond
Original issue discount bond
Redemption option which protects investors against rise in interest rate is considered as________?
A: Redeemable at deferred
B: Redeemable at par
C: Redeemable at refund
D: Redeemable at finding
Redeemable at par
Cash flows that should be considered for decision in hand are classified as____________?
A: Relevant cash flows
B: Irrelevant cash flows
C: Marginal cash flows
D: Transaction cash flows
Relevant cash flows
Project which is started by firm for increasing sales is classified as______________?
A: New expansion project
B: Old expanded project
C: Firm borrowing project
D: Product line selection
New expansion project
