Simplified guide of MCQs for Exams, Interviews

Topic: Management Sciences

1 .  ___________ is concerned with the acquisition, financing, and management of assets with some overall goal in mind.

  • A. Financial management
  • B. Profit maximization
  • C. Agency theory
  • D. Social responsibility

Correct Answer:

Financial management

2 .  Having some overall goal in mind, financial management is concerned with:

  • A. Acquisition of assets
  • B. Financing of assets
  • C. Management of assets
  • D. All of them

Correct Answer:

All of them

3 .  The investment decision is the most important of the firm’s three major decisions, when it comes to:

  • A. Value creation
  • B. Value addition
  • C. Value proposition
  • D. Value deletion

Correct Answer:

Value creation

4 .  Annual cash dividends divided by annual earnings; or alternatively, dividends per share divided by earning per share is termed as:

  • A. Earning per share ratio
  • B. Proposed dividend ratio
  • C. Dividend payout ratio
  • D. Expected dividend ratio

Correct Answer:

Dividend payout ratio

5 .  Profit maximization is the maximizing a firm’s Earning:

  • A. Before Tax
  • B. After Tax
  • C. Both A and B
  • D. None of Them

Correct Answer:

After Tax

6 .  An individual authorized by another person, called the principle, to act on the latter’s on behalf is known as an/a:

  • A. Agent
  • B. Servant
  • C. Subordinate
  • D. Assistant

Correct Answer:


7 .  Stakeholders include:

  • A. Stakeholders
  • B. Creditors and customs
  • C. Employees and suppliers
  • D. All of Them

Correct Answer:

All of Them

8 .  All the constituencies with a stake in the fortunes of the company are termed as:

  • A. Stakeholders
  • B. Directors
  • C. Chief executives
  • D. Subordinates

Correct Answer:


9 .  The system by which companies are managed and controlled is known as:

  • A. Management System
  • B. Strategic System
  • C. Corporate Governance
  • D. Internal System

Correct Answer:

Corporate Governance

10 .  The Board of Directors sets company-wide policy and advices the CEO and other senior executies, who manage the company’s:

  • A. Managerial activities
  • B. Year-to-Year activities
  • C. Day-to-Day activities
  • D. Financial activities

Correct Answer:

Day-to-Day activities