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Management Questions and Answers for Competitive Exams | MBA BBA Quiz Set 45

(1) Which of the following is a career path pursued by employees who seek variety and independence and may not be designed by the organization ?
(1) Expert career path
(2) Transitory career path
(3) To secure and improve living standards and economic status of workers
(4) Spiral career path
Answer: Transitory career path
(2) An act that provides for certain benefits to employees in case of sickness, maternity and employment injury is
(1) The Employer Liability Act, 1938
(2) The Employees’ Compensation Act, 1923
(3) The Payment of Wages Act, 1948
(4) The Employees’ State Insurance Act, 1948
Answer: The Employees’ State Insurance Act, 1948

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(3) The coefficient of variation is a useful measure of risk when a financial manager is comparing the projects which have ? (1) (2) (3) (4) All of the above
(1) Same standard deviations but different expected values.
(2) Different standard deviations but same expected values.
(3) Product communication strategies
(4) Market segmentation and product promotion
Answer: Product communication strategies
(4) To comply with the requirement of TRIPS agreement and to protect products of Indian origin, which one of the following was enacted ?
(1) TO Compliance Act 1999
(2) Geographical Indication of Goods (Registration and Protection) Act 1999
(3) The Patents Act
(4) The Copyright Act
Answer: Geographical Indication of Goods (Registration and Protection) Act 1999
(5) Strikes conducted by workers or employees without the authority and consent of unions is called
(1) Picketing
(2) Economic strike
(3) Wildcat strikes
(4) General strikes
Answer: Wildcat strikes
(6) Consider the following statements regarding bonds and examine which is/are correct statement/s.

Statement I : Current yield of bond is equal to annual interest divided by prevalent value of bond.

Statement II : Zero-coupon bonds are issued at premium and redeemed at par.

Statement III : The present value of the bond is the total of the discounted value of annual interest payments and the discounted value of maturity value.

Select the correct code :
(1) Only Statement I is correct.
(2) Statements I and II are correct.
(3) Statements I and III are correct.
(4) Statement II and III are correct.
Answer: Statements I and III are correct.
(7) The problem of conflict in ranking between NPV and IRR, arising on account of difference in the pattern of cash flows with reference to time can be resolved by
(1) Modified NPV only
(2) Modified IRR only
(3) (A) and (B) both
(4) Decision tree
Answer: (A) and (B) both
(8) Assertion (A) : According to the traditional view of capital structure a firm has an optimal capital structure that occurs when WACC is minimum.

Reason (R) : This approach clearly implies that WACC decreases only within the reasonable limit of financial leverage (D/E) and reaching to the minimum level, it starts increasing with financial leverage (D/E).

Select the correct code :
(1) (A) and (R) both are correct.
(2) (A) is correct but (R) is incorrect.
(3) (R) is correct but (A) is incorrect.
(4) (A) and (R) both are incorrect.
Answer: (A) and (R) both are correct.
(9) In order to escape a hostile take-over, the management of a company makes an offer to a friendly company for acquisition. This defensive technique is known as
(1) Crown jewels
(2) White knight
(3) Green mail
(4) Golden parachutes
Answer: White knight
(10) Consider the following statements regarding the assumptions of Capital Asset Pricing Model :

I. All investors have the same expectations about expected returns and risks of securities.

II. Lending and borrowing rates of all investors are different.

III. Investors expect highest returns for highest level of risk.

IV. Share prices reflect all available information.

V. Individual investors are not able to affect the prices of securities.

Select the correct code :
(1) I and II only
(2) I, II and III only
(3) I, III and V only
(4) I, IV and V only
Answer: I, IV and V only
(11) When a firm uses more short-term financing, than that required to finance, the temporary or variable current assets, the firm is said to follow :
(1) a conservative approach of financing
(2) an aggressive approach of financing
(3) a matching approach of financing
(4) a moderate approach of financing
Answer: an aggressive approach of financing
(12) When the total of both the sides of balance sheet is converted to 100 and each item is shown as percentage of the total, and this exercise is carried out for more than two years, this analysis is known as
(1) Index Analysis
(2) Trend Analysis
(3) Du Pont Analysis
(4) Common-size Analysis
Answer: Common-size Analysis
(13) If the company has acquired three months’ option to buy 3000 barrels of oil, at an exercise price of $ 50 and if the premium is $ 0.60 per barrel and it at the time of option expiry oil price is $ 52 per barrel, the net pay-off to the company will be
(1) $ 1800
(2) $ 4200
(3) $ 6000
(4) $ 7800
Answer: $ 4200
(14) Consider the following statements :

1. The ultimate level of market segmentation leads to “one-to-one” marketing.

2. Any attempt to target marketing to children or minorities is discriminatory and unethical.

3. The internet as a medium of adverting has high selectivity and cost.

4. A ‘Push’ strategy is better suited for directing the marketing effort towards final consumers.

(1) Statements 1 and 4 are true and others are not.
(2) Statements 1 and 2 are true and others are not.
(3) Statement 1 is true and other are not.
(4) All Statements are false.
Answer: Statement 1 is true and other are not.
(15) Producers of convenience goods typically prefer
(1) Exclusive distribution
(2) Selective distribution
(3) Intensive distribution
(4) Intermittent distribution
Answer: Intensive distribution

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