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MCQOPTIONS
This section includes 1234 Mcqs, each offering curated multiple-choice questions to sharpen your Teaching knowledge and support exam preparation. Choose a topic below to get started.
| 551. |
Cost of capital does not mean |
| A. | Cut off rate decided by management |
| B. | Rate of interest |
| C. | Expectations of investors for dividend |
| D. | Money paid to SEBI for permission to acquire capital |
| Answer» E. | |
| 552. |
Financial management is not required to |
| A. | Determine the financial assets |
| B. | Effectively arrange the funds |
| C. | Manages the efficiency of the employees |
| D. | None of the above |
| Answer» D. None of the above | |
| 553. |
To achieve wealth maximization, the finance manager has to take careful decisions in case of |
| A. | Investment |
| B. | financing |
| C. | Dividend |
| D. | All of these |
| Answer» E. | |
| 554. |
A long-term investment decision is called a |
| A. | Capital budgeting decision |
| B. | Working capital decision |
| C. | Financial decision |
| D. | Dividend decision |
| Answer» B. Working capital decision | |
| 555. |
Capital structure denotes the |
| A. | Capital mix |
| B. | financing mix |
| C. | Equity mix |
| D. | None of the above |
| Answer» B. financing mix | |
| 556. |
The main reason for adjustments incapital structures include |
| A. | To reduce the cost burden |
| B. | To capitalise the retained earnings |
| C. | To simplify the capital structure |
| D. | All of the above |
| Answer» E. | |
| 557. |
Match the following List I (Concepts) List II (Disadvantages) A. Under capitalisation 1. Ignores time patterns of returns B. Over capitalisation 2. Increase in speculative activities C. Profit maximisation 3. Decline in value of maximisation securities Codes |
| A. | A\[\to \]3, B\[\to \]1, C\[\to \]2 |
| B. | A\[\to \]1, B\[\to \]2, C\[\to \]3 |
| C. | A\[\to \]3, B\[\to \]2, C\[\to \]1 |
| D. | A\[\to \]2, B\[\to \]3, C\[\to \]1 |
| Answer» E. | |
| 558. |
The overall capitalisation rate and the cost of debt remain constant for all degrees of financial leverage is advocated by |
| A. | Traditional approach |
| B. | Net income approach |
| C. | net operating income approach |
| D. | MM approach |
| Answer» D. MM approach | |
| 559. |
Match the following List I (Concepts) List II (Advantages) A. Profit maximisation 1. Added flexibility B. Under capitalisation 2. Impact on society through factor payments C. Over capitalisation 3. Maximisation of profitability of the firm D. Financial management 4. Higher rate of dividend Codes |
| A. | A\[\to \]4, B\[\to \]1, C\[\to \]2, D\[\to \]3 |
| B. | A\[\to \]2, B\[\to \]4, C\[\to \]1, D\[\to \]3 |
| C. | A\[\to \]3, B\[\to \]2, C\[\to \]1, D\[\to \]4 |
| D. | A\[\to \]1, B\[\to \]2, C\[\to \]3, D\[\to \]4 |
| Answer» C. A\[\to \]3, B\[\to \]2, C\[\to \]1, D\[\to \]4 | |
| 560. |
Financial management aims at |
| A. | Ensuring availability of enough funds |
| B. | Reducing the cost of funds procured |
| C. | Effective deployment of funds |
| D. | All of the above |
| Answer» E. | |
| 561. |
Cost of capital from all the sources of funds is called |
| A. | Specific cost |
| B. | composite cost |
| C. | Implicit cost |
| D. | simple average cost |
| Answer» B. composite cost | |
| 562. |
Which of the following limitations is/are limitation of profit maximisation objectives? |
| A. | Financial management ignores the value of money |
| B. | Financial management overlooks quality aspect of profit from future activities |
| C. | Ignores social responsibility of business |
| D. | All of the above |
| Answer» E. | |
| 563. |
Net working capital refers to |
| A. | Current assets - Current liabilities |
| B. | Current assets + Current liabilities |
| C. | Current liabilities - Current assets |
| D. | None of the above |
| Answer» B. Current assets + Current liabilities | |
| 564. |
Which of the following is/are not a function of financial management? |
| A. | Planning for funds |
| B. | Raising of funds |
| C. | Allocation of funds |
| D. | All of the above |
| Answer» E. | |
| 565. |
Financial management is least concern for |
| A. | Financial forecasting |
| B. | Allocation of funds |
| C. | Establishing assets management |
| D. | Gross profit ratio |
| Answer» E. | |
| 566. |
Direction: The following items consist of two statements, Statement I and Statement II. You are to examine these two statements carefully and select the answer to these items using the codes given below. Statement I Future financial requirement of the company influence dividend decision. Statement II During boom period, companies are usually in a race of increasing rate of dividend. Codes |
| A. | Both statements are correct |
| B. | Both statements are incorrect |
| C. | Statement I is correct, but Statement II is incorrect |
| D. | Statement I is incorrect, but Statement II is correct |
| Answer» B. Both statements are incorrect | |
| 567. |
Which decisions are taken by the financial manager? |
| A. | Investment Decisions |
| B. | Financing Decisions |
| C. | Dividend Decisions |
| D. | All the above |
| Answer» E. | |
| 568. |
Direction: The following items consist of two statements, Statement I and Statement II. You are to examine these two statements carefully and select the answer to these items using the codes given below. Statement I Financial planning is not an essential financial process. Statement II Financial planning may be short-term, medium-term or long-term. Codes |
| A. | Both statements are correct |
| B. | Both statements are incorrect |
| C. | Statement I is correct, but Statement II is incorrect |
| D. | Statement I is incorrect, but Statement II is correct |
| Answer» E. | |
| 569. |
Direction: The following items consist of two statements, Statement I and Statement II. You are to examine these two statements carefully and select the answer to these items using the codes given below. Statement I Under capitalization leads to over capitalisation. Statement II 'Capital' and 'Capitalisation' are synonymous terms. Codes |
| A. | Both statements are correct |
| B. | Both statements are incorrect |
| C. | Statement I is correct, but Statement II is incorrect |
| D. | Statement I is incorrect, but Statement II is correct |
| Answer» D. Statement I is incorrect, but Statement II is correct | |
| 570. |
Investment decision include |
| A. | Expansion of existing business |
| B. | Expansion of new business |
| C. | Replacement |
| D. | All of the above |
| Answer» E. | |
| 571. |
How to achieve wealth maximisation? |
| A. | Avoid high level of risks |
| B. | Reduction in cost |
| C. | Pay dividends |
| D. | All of the above |
| Answer» E. | |
| 572. |
The policy concerning quantum of profits to be distributed as dividend is called |
| A. | Dividend policy |
| B. | distribution policy |
| C. | Share policy |
| D. | sale policy |
| Answer» B. distribution policy | |
| 573. |
Financial management is a _____ process. |
| A. | Dynamic |
| B. | rigid |
| C. | Continuous |
| D. | discontinuous |
| Answer» D. discontinuous | |
| 574. |
Which of the following is not an element of financial management? |
| A. | Allocation of resources |
| B. | Financial decision-making |
| C. | Financial planning |
| D. | Financial control |
| Answer» E. | |
| 575. |
Management of all matters related to an organisation's finance is called |
| A. | cash inflows and outflows |
| B. | Allocation of resources |
| C. | Financial management |
| D. | Finance |
| Answer» D. Finance | |
| 576. |
Decision regarding amount of finance to be raised from various sources is a |
| A. | Working capital |
| B. | financing decision |
| C. | Investment decision |
| D. | Dividend decision |
| Answer» C. Investment decision | |
| 577. |
In BPR, technology should be |
| A. | Traditional |
| B. | latest |
| C. | Any of the above |
| D. | None of the above |
| Answer» D. None of the above | |
| 578. |
Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct? Assertion (A) ISO Organisation aimed to maintain a unified industrial standard across the world. Reason (R) Preventive action is one of the core principle certificate of the ISO. Codes |
| A. | Both A and R are true and R is the correct explanation of A |
| B. | Both A and R are true, but R is not the correct explanation of A |
| C. | A is true, but R is false |
| D. | A is false, but R is true |
| Answer» D. A is false, but R is true | |
| 579. |
Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct? Assertion (A) Mission statement is the role set by organisation to servels its stakeholders. Reason (R) Mission statement is the tool to stakeholders to track organisation work. Codes |
| A. | Both A and R are true and R is the correct explanation of A |
| B. | Both A and R are true, but R is not the correct explanation of A |
| C. | A is true, but R is false |
| D. | A is false, but R is true |
| Answer» C. A is true, but R is false | |
| 580. |
Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct? Assertion (A) Understanding in detail existing business processes is key to banchmarking. Reason (R) Banchmarking set an implicit target for the management. Codes |
| A. | Both A and R are true and R is the correct explanation of A |
| B. | Both A and R are true, but R is not the correct explanation of A |
| C. | A is true, but R is false |
| D. | A is false, but R is true |
| Answer» C. A is true, but R is false | |
| 581. |
Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct? Assertion (A) Total quality management is an approach to integrate all functions of organistion. Reason (R) TQM approach rest on the assumption of do the right things at right time. Codes |
| A. | Both A and R are true and R is the correct explanation of A |
| B. | Both A and R are true, but R is not the correct explanation of A |
| C. | A is true, but R is false |
| D. | A is false, but R is true |
| Answer» B. Both A and R are true, but R is not the correct explanation of A | |
| 582. |
Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct? Assertion (A) Due to globalisation management research has been expanding at faster rate. Reason (R) India adopted new economic tools namely liberation, privatisation, globalisation in 1990. Codes |
| A. | Both A and R are true and R is the correct explanation of A |
| B. | Both A and R are true, but R is not the correct explanation of A |
| C. | A is true, but R is false |
| D. | A is false, but R is true |
| Answer» B. Both A and R are true, but R is not the correct explanation of A | |
| 583. |
Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct? Assertion (A) Size of QC should not be too big. Reason (R) So that meaningful participating in meeting may be possible. Codes |
| A. | Both A and R are true and R is the correct explanation of A |
| B. | Both A and R are true, but R is not the correct explanation of A |
| C. | A is true, but R is false |
| D. | A is false, but R is true |
| Answer» B. Both A and R are true, but R is not the correct explanation of A | |
| 584. |
Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct? Assertion (A) QC is small group of employees. Reason (R) Group of employees of QC should not of similar area. Codes |
| A. | Both A and R are true and R is the correct explanation of A |
| B. | Both A and R are true, but R is not the correct explanation of A |
| C. | A is true, but R is false |
| D. | A is false, but R is true |
| Answer» D. A is false, but R is true | |
| 585. |
Which of the following is not the principle of TQM? |
| A. | Statistical tools |
| B. | Supplier partnership |
| C. | Measurement and recognition |
| D. | Methodological tools |
| Answer» E. | |
| 586. |
Which of the following statement/s is/are correct? I. Knowledge management is imperatives of meeting tactical and strategic requirement. II. Knowledge management creates values for organisation. Select the correct answer using the codes given below |
| A. | Only I |
| B. | Only II |
| C. | Both I and II |
| D. | Neither I nor II |
| Answer» D. Neither I nor II | |
| 587. |
Which of the following is not the result of business process standardisation? |
| A. | Variability reduction |
| B. | Company training culture |
| C. | Profit maximisation |
| D. | Employee retentions |
| Answer» E. | |
| 588. |
What is the meaning of ISOS in Greek? |
| A. | Equal |
| B. | Equality |
| C. | Equity |
| D. | Equation |
| Answer» B. Equality | |
| 589. |
Which of the following is not the principle of ISO certificate? |
| A. | Situation control |
| B. | Document control |
| C. | Record control |
| D. | Corrective action |
| Answer» B. Document control | |
| 590. |
Which of the following statement/s is/are correct? I. TQM implementation should be delayed until the organisation is in a stable state. II. TQM accept the nation that amistad can be made by people. Select the correct answer using the codes given below |
| A. | Only I |
| B. | Only II |
| C. | Both I and II |
| D. | Neither I nor II |
| Answer» D. Neither I nor II | |
| 591. |
What is the principle aim of business process, standardisation? |
| A. | To unify the procedures in organisation |
| B. | To united the different organisation |
| C. | To unify the accounting practices |
| D. | To modify the market situation |
| Answer» B. To united the different organisation | |
| 592. |
What is the full form of ISO? |
| A. | International Organisation for Standardisation |
| B. | Internal Subscription Organisation |
| C. | Internation Subscription Organisation |
| D. | International Standardisation Organisation |
| Answer» B. Internal Subscription Organisation | |
| 593. |
ISO certification is required |
| A. | To increase success on public and private tenders |
| B. | To improve internal efficiency and reduce costs |
| C. | Both (a) and (b) |
| D. | None of the above |
| Answer» D. None of the above | |
| 594. |
Knowledge, management consists of |
| A. | Initiatives |
| B. | processes |
| C. | Strategies |
| D. | All of the above |
| Answer» E. | |
| 595. |
Strategic management is applicable in |
| A. | Small organization |
| B. | large organisation |
| C. | Every organization |
| D. | None of the above |
| Answer» D. None of the above | |
| 596. |
Strategic management is ........process. |
| A. | One time |
| B. | weekly |
| C. | Yearly |
| D. | continuous |
| Answer» E. | |
| 597. |
An organisation has competitive advantage it its profitability is........ than average profitability of the industry. |
| A. | Lower |
| B. | equal |
| C. | Higher |
| D. | None of these |
| Answer» D. None of these | |
| 598. |
Match the following List I List II A. Strategic benchmarking 1. can lead to innovation and dramatic improvements B. Competitive benchmarking 2. often results in short term benefits C. Process benchmarking 3. when business need to improve overall performance D. Functional benchmarking 4. through trade associations or third parties Codes |
| A. | A\[\to \]3, B\[\to \]4, C\[\to \]2, D\[\to \]1 |
| B. | A\[\to \]3, B\[\to \]1, C\[\to \]2, D\[\to \]4 |
| C. | A\[\to \]1, B\[\to \]2, C\[\to \]3, D\[\to \]4 |
| D. | A\[\to \]4, B\[\to \]1, C\[\to \]2, D\[\to \]3 |
| Answer» B. A\[\to \]3, B\[\to \]1, C\[\to \]2, D\[\to \]4 | |
| 599. |
Consider the following statements I. Application of benchmarking involves four steps. II. Benchmarking should not be considered a one-off exercise. Which of the statement (s) given above is/are correct? |
| A. | Only I |
| B. | Only II |
| C. | Both I and II |
| D. | None of the above |
| Answer» D. None of the above | |
| 600. |
Benchmarking involved looking outwards to |
| A. | Examine how other achieve performance level |
| B. | Understand the processes other use |
| C. | Both (a) and (b) |
| D. | None of the above |
| Answer» D. None of the above | |