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.
Price of an outstanding bond decreases when market rate is_______________?
A: Increased
B: Decreased
C: Earned
D: Never changed
Increased
Right held with corporations to call issued bonds for redemption is considered as___________?
A: Artificial provision
B: Call provision
C: Redeem provision
D: Original provision
Call provision
Required rate of return in calculating bonds cash flow is also classified as_______?
A: Going rate of return
B: Yield
C: Earning rate
D: Both A and B
Both A and B
If default probability is zero and bond is not called, then yield to maturity is_____________?
A: Mature expected return rate
B: Lower than expected return rate
C: Higher than expected return rate
D: Equal to expected return rate
Equal to expected return rate
Cash flows that could be generated from an owned asset by company but not use in project are classified as_________________?
A: Occurred cost
B: Mean cost
C: Opportunity costs
D: Weighted cost
Opportunity costs
Relevant cash flow which company expects when its will implement project is classified as_____________?
A: Irrelevant cash flow
B: Relevant cash flow
C: Incremental cash flow
D: Decrease cash flow
Incremental cash flow
Nominal interest rates and nominal cash flows are usually reflected the____________?
A: Inflation effects
B: Opportunity effects
C: Equity effects
D: Debt effects
Inflation effects
In cash flow estimation, depreciation shelters companys income from_______?
A: Expansion
B: Salvages
C: Taxation
D: Discounts
Taxation
Weighted average cost of debt, preferred stock and common equity is classified as_____________?
A: Cost of salvage
B: Cost of interest
C: Cost of taxation
D: Cost of capital
Cost of capital
In cash flow estimation and risk analysis, real rate will be equal to nominal rate if there is__________?
A: No inflation
B: High inflation
C: No transactions
D: No acceleration
No inflation