MCQ For Management
MCQ For Management
MCQ For Management
MGT 1B
3) Which of the following is not a major area of concern and emphasis in modern financial
management?
a. Inflation and its effect on profits b. Stable short-term interest rates
c. Changing international environment d. Increased reliance on debt
4) Which of the following is not a major area of concern and emphasis in modern financial
management?
a. Marginal analysis b. Risk-return trade-off c. Commodity Trading
d. Changing Financial Institution
5) Financial manager's goal of maximizing current or short-term earnings may not be appropriate
because
a. It fails to consider the timing of the benefits.
b. Increased earnings may be accompanied by unacceptably higher levels of risk.
c. Earning are subjective; they can be defined in various ways such as accounting or economic
earnings.
d. All of the given choices.
8) A corporation is
a. Owned by stockholders who enjoy the privilege of limited liability.
b. Easily divisible between owners
c. A separate legal entity with perpetual life.
d. All of the above
9) One of the major advantages of a sole proprietorship is
a. that the owner has limited liability.
b. that stock in the proprietorship can be easily transferred.
c. that it is exempt from many tax rules that would otherwise apply when employees are hired by
the firm.
d. low operating costs.