Management Questions and Answers - Set 10 | MBA BBA Solved Multiple Choice Questions(MCQs)

1 Which one of the following is not a characteristic of the ‘Hot - Stove Rule’ of disciplinary action ?

1 Discipline is directed against the act and not against anybody else.

2 Rules and regulations fore-warn regarding consequences of indiscipline.

3 Consistency of disciplinary action is certain.

4 Discipline is personal.

Answer:Discipline is personal.

2 Which combination of the following statements about the net present value method of the investment project appraisal is correct ?

(a) It considers all the cash flows from the project

(b) It gives more weightage to distant flows than near-term flows

(c) It considers the time value of money

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1 (a) and (b) only

2 (b) and (c) only

3 (a) and (c) only

4 (a), (b) and (c) all

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Answer:(a) and (c) only

3 Capital structure of a business unit consists of :

1 Equity and preference share capital

2 Equity, long-term debt and short-term loan

3 Equity capital and debt capital

4 Equity, preference and debt capital

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Answer:Equity, preference and debt capital

4 In the formula KD=

I used for computation of the cost of debt capital, B0 denotes as which B0 one of the following ?

1 Net cash inflow at the time of issue

2 Market price of debenture

3 Face value of debenture

4 Probable net cash inflow to debenture holder on sale of the debenture in near future

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Answer:Net cash inflow at the time of issue

5 In computation of the weighted average cost of capital, weights are assigned as per :

1 Proportion of fixed and current assets

2 Proportion of different sources of finance

3 Proportion of long-term and short term debts

4 Proportion of the various components of equity in the business

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Answer:Proportion of different sources of finance

6 “The customer wants an inexpensive car”. This is an example of which one of the following type of needs ?

1 Stated needs

2 Real needs

3 Unstated needs

4 Secret needs

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Answer:Stated needs

7 Assertion (A) : Marketers are increasingly asked to justify their investments in financial and profitability terms and rarely in terms of building the brand and customer base.

Reasoning (R) : Organizations recognize that little of their market value comes from intangible assets.

Code :

1 Both (A) and (R) are correct.

2 Both (A) and (R) are incorrect.

3 (A) is correct and (R) is the right explanation of (A)

4 (A) is correct but (R) is not the right explanation of (A).

View Answer

Answer:Both (A) and (R) are incorrect

8 Which one of the following is a false statement ?

1 The most attractive market segment is one in which entry barriers are low and exit barriers are high.

2 A market segment is unattractive when there are actual or potential substitutes for the product.

3 A market segment is unattractive if buyers possess strong or growing bargaining power.

4 A segment is unattractive if the company’s suppliers are concentrated or organized

View Answer

Answer:The most attractive market segment is one in which entry barriers are low and exit barriers are high.

9 Which one of the following OR Models is appropriate for project planning and scheduling operations ?

1 Games Models

2 Inventory Models

3 Network Models

4 Queuing Models

View Answer

Answer:Network Models

10 While obtaining the optimal solution to the linear programming problem, by using graphical method, which one of the following is contradictory to the essential requirements ?

1 Collection of all feasible solutions entails the use of a convex set

2 There are infinite number of basic feasible solutions within the solution space

3 In the convex set of the feasible solutions, atleast one of the extreme points gives an optimal solution

4 The value of the objective function will be the same for all convex combinations of the extreme points if such points are more than one in the feasible solution space

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Answer:There are infinite number of basic feasible solutions within the solution space

11 While using Markov Analysis, which one of the following assumptions is incompatible ?

1 The system has an infinite set of possible outcomes

2 Transition probabilities are constant over a given length of time

3 The condition of the system in any given period depends on preceding period condition

4 Changes in the system may occur only once during each period

View Answer

Answer:The system has an infinite set of possible outcomes

12 Statement - I : A hypothesis test for comparing the variances of two independent populations with the help of variances of two small samples is known as chi-square test.

Statement - II : To test the hypothesis that the population standard deviation has a specific value on the basis of the values of sample standard deviation of small sized sample, F-test is relevant.

Code :

1 Both the statements are correct

2 Both the statements are incorrect

3 Statement - I is correct while Statement - II is incorrect

4 Statement - I is incorrect while Statement - II is correct

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Answer:Both the statements are incorrect

13 Statement - I : A sampling distribution of mean, prepared on the basis of small sized samples from a population which is not normally distributed, is not normally distributed.

Statement - II : To test the significance of the difference between means of two small sized samples when the parameter values of the standard deviations are given, Z-test can be applied.

Code :

1 Both the statements are correct

2 Both the statements are incorrect

3 Statement - I is correct while Statement - II is incorrect

4 Statement - I is incorrect while Statement - II is correct

View Answer

Answer:Both the statements are correct

14 Which one of the following is restricted non-probability based sampling method ? `

1 Stratified sampling

2 Quota sampling

3 Cluster sampling

4 Systematic sampling

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Answer:Quota sampling

15 Statement - I : When a null hypothesis is true but as per the hypothesis- testing, it is rejected; it is known as Type II error in hypothesis-testing.

Statement - II : For testing the significance of the differences among the performance of more than two sample groups when the data are non-parametric, Kruskal-Wallis (H) test is appropriate.

Code :

1 Both the statements are correct

2 Both the statements are incorrect

3 Statement - I is correct while Statement - II is incorrect

4 Statement - I is incorrect while Statement - II is correct

View Answer