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.
In internal rate of returns, discount rate which forces net present values to become zero is classified as__________?
A: Positive rate of return
B: Negative rate of return
C: External rate of return
D: Internal rate of return
Internal rate of return
High price to earnings ratio shows companys_________?
A: Low dividends paid
B: High risk prospect
C: High growth prospect
D: High marginal rate
High growth prospect
Return on assets = 5.5%, Total assets $3,000 and common equity $1,050 then return on equity would be_________?
A: $22,275
B: 15.71%
C: 1.93%
D: 1.925 times
15.71%
Number of years forecasted to recover an original investment is classified as________?
A: Payback period
B: Forecasted period
C: Original period
D: Investment period
Payback period
In capital budgeting, a negative net present value result in______________?
A: Zero economic value added
B: Percent economic value added
C: Negative economic value added
D: Positive economic value added
Negative economic value added
Modified rate of return and modified internal rate of return with exceed cost of capital if net present value is____________?
A: Positive
B: Negative
C: Zero
D: One
Positive
Type of bonds that pays no coupon payment but provides little appreciation are classified as______________?
A: Depreciated bond
B: Interest bond
C: Zero coupon bond
D: Appreciation bond
Zero coupon bond
Reinvestment risk of bonds is higher on__________?
A: Short maturity bonds
B: High maturity bonds
C: High premium bonds
D: High inflated bonds
Short maturity bonds
In large expansion programs, increased riskiness and flotation cost associated with project can cause_______________?
A: Rise in marginal cost of capital
B: Fall in marginal cost of capital
C: Rise in transaction cost of capital
D: Rise in transaction cost of capital
Rise in marginal cost of capital
Cash outflows are costs of project and are represented by___________?
A: Negative numbers
B: Positive numbers
C: Hurdle number
D: Relative number
Negative numbers