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.
Sum of discounted cash flows is best defined as____________?
A: Technical equity
B: Defined future value
C: Project net present value
D: Equity net present value
Project net present value
If net present value is positive, then profitability index will be__________?
A: Greater than two
B: Equal to
C: Less than one
D: Greater than one
Greater than one
Cash flows occurring with more than one change in sign of cash flow are classified as________?
A: Non-normal cash flow
B: Normal cash flow
C: Normal costs
D: Non-normal costs
Non-normal costs
Situation in which firm limits expenditures on capital is classified as________?
A: Optimal rationing
B: Capital rationing
C: Marginal rationing
D: Transaction rationing
Capital rationing
An internal rate of return in capital budgeting can be modified to make it representative of_________?
A: Relative outflow
B: Relative inflow
C: Relative cost
D: Relative profitability
Relative profitability
Other factors held constant, greater project liquidity is because of___________?
A: Less project returns
B: Greater project return
C: Shorter payback period
D: Greater payback period
Shorter payback period
Project whose cash flows are sufficient to repay capital invested for rate of return then net present value will be_________?
A: Negative
B: Zero
C: Positive
D: Independent
Zero
Process in which managers of company identify projects to add value is classified as__________?
A: Capital budgeting
B: Cost budgeting
C: Book value budgeting
D: Equity budgeting
Capital budgeting
Bonds issued by small companies tend to have_____________?
A: High liquidity premium
B: High inflation premium
C: High default premium
D: High yield premium
High liquidity premium
Bonds issued by government and backed by Pak government are classified as_________?
A: Issued security
B: Treasury bonds
C: U.S bonds
D: Return security
Treasury bonds