Compensation Management - 8

LIST OF ATTEMPTED QUESTIONS AND ANSWERS 2nd

Select The Blank
Question During the research it was found that in certain cities prevailing wage rate are ________where as organizational ability to pay is more.
Correct Answer Very low
Your Answer Very low

True/False
Question Within the factory group promotion is important.
Correct Answer False
Your Answer False

Multiple Choice Single Answer
Question Perquisites or profits or any remuneration received from person other than employer is taxable under the head :-
Correct Answer Income from other sources
Your Answer Income from other sources

Select The Blank
Question ________ under profit sharing contributes directly to an employee's immediate economic gain.
Correct Answer Cash plan
Your Answer Cash plan

True/False
Question House rent allowance paid to a employee residing in his own house is not exempt from tax.
Correct Answer True
Your Answer True

Select The Blank
Question Wage differentials are inter-industry, inter-firm and ________.
Correct Answer Inter area
Your Answer Inter area

True/False
Question Direct labour costs are included in cost of production of each unit.
Correct Answer True
Your Answer True

Multiple Choice Single Answer
Question Time spent by same worker on various jobs is recorded on daily basis in :-
Correct Answer Daily time sheet.
Your Answer Daily time sheet.

Multiple Choice Multiple Answer
Question Monetary incentive plans result in :-
Correct Answer Greater output per man-hour , Lower unit cost , Higher wages
Your Answer Greater output per man-hour , Lower unit cost , Higher wages

Select The Blank
Question Today there is strong competition for acquiring as much ________ as possible.
Correct Answer Wealth
Your Answer Wealth

Select The Blank
Question Executives are compensated for the various ________ incurred by them.
Correct Answer Expenses
Your Answer Expenses

Multiple Choice Multiple Answer
Question Broad groups may be illustrated within manufacturing as :-
Correct Answer Managerial , Clerical , Factory
Your Answer Managerial , Clerical , Factory

Multiple Choice Multiple Answer
Question Bonus, as the incentive to managers is determined :-
Correct Answer By formula , By discretion used in allocation of bonus
Your Answer By formula , By discretion used in allocation of bonus , By Board of Directors

Select The Blank
Question ________ generated out of payroll system shows amounts of debits and credits.
Correct Answer Journal entry
Your Answer Bills entry

True/False
Question Performance standards & norms for incentive payments should be set up high for better results.
Correct Answer False
Your Answer True

Match The Following
Question Correct Answer Your Answer

Merric's multiple piece rate plan Low piece rate for slow workers and high piece rate for higher production Sharing profits undertaking

Emerson efficiency plan Gradual increase in remuneration based on efficiency Bonus to the group

Co-partnership system Sharing profits undertaking No fear of wage cut

Taylor's differential piece-rate plan No fear of wage cut Gradual increase in remuneration based on efficiency


Multiple Choice Single Answer
Question Following is method of time booking :-
Correct Answer Daily time sheet.
Your Answer Time recording clock.

Multiple Choice Single Answer
Question Work study department is engaged in activities like determining :-
Correct Answer Standard procedure
Your Answer Labour cost

Match The Following
Question Correct Answer Your Answer

Cost accounting Dept. Accumulation & classification all cost data Selection & training of employees.

Personnel Dept. Selection & training of employees. Selection & training of employees.

Payroll Dept. Maintain record of wage rate of each employee. Maintain record of wage rate of each employee.

Engineering Dept. Preparation of time & motion studies Preparation of time & motion studies


Multiple Choice Multiple Answer
Question Following are unavoidable causes of employees turnover :-
Correct Answer Retirement , Marriage
Your Answer Retirement , Marriage

True/False
Question The cost of time lost in strikes is charged to Profit & Loss Account.
Correct Answer True
Your Answer True

Select The Blank
Question Ratio of number persons over 4 years of service at present to total employed 4 years ago is called ________
Correct Answer Skill wastage index
Your Answer Skill wastage index

Multiple Choice Multiple Answer
Question Following are causes of idle time of labour pertaining to production,
Correct Answer Failure of electricity. , Breakdown of machinery
Your Answer Failure of electricity. , Seasonal nature of demand. , Breakdown of machinery

Multiple Choice Single Answer
Question Disadvantage of maintaining hand written register for attendance is :-
Correct Answer Depends upon honesty.
Your Answer Depends upon honesty.

True/False
Question Salary is still the only or chief motivator for IT employees.
Correct Answer False
Your Answer True

Select The Blank
Question Cost of time spent on conducting interviews & selecting a candidate for ________ is called Replacement cost.
Correct Answer Replacement
Your Answer Replacement

True/False
Question The cost of living pay criterion is usually regarded as an automatic minimum equity pay criterion
Correct Answer True
Your Answer False

True/False
Question Incentive schemes sometimes lead to jealousies and misunderstanding among the workers.
Correct Answer True
Your Answer True

Multiple Choice Multiple Answer
Question Article 43 reads: State shall endeavour to secure by suitable legislation to all :-
Correct Answer Agricultural workers , Industrial , Working in a living wage
Your Answer Agricultural workers , Industrial , Working in a living wage

Multiple Choice Multiple Answer
Question Advantages of having several pay ranges for each organisations are :-
Correct Answer The management could take a more flexible stance with respect to the labour market , It made it easy to attract experienced employees from other organisations , It helped to ensure that there was an overlap between the pay rates and those prevailing in the labour market
Your Answer The management could take a more flexible stance with respect to the labour market , It made it easy to attract experienced employees from other organisations , It helped to ensure that there was an overlap between the pay rates and those prevailing in the labour market

True/False
Question If an employee pays fees for attending some management course, the fees can be allowed for deduction from salary income.
Correct Answer False
Your Answer False

Multiple Choice Multiple Answer
Question In profit-sharing plan, employees :-
Correct Answer Work more diligently , Try to achieve higher profits , Fulfill entirely their responsibilities
Your Answer Work more diligently , Try to achieve higher profits , Fulfill entirely their responsibilities

Select The Blank
Question ________ of payment recognizes that individuals are concerned about the money paid to them and also the relationship of this amount to what others are paid.
Correct Answer Equity approach
Your Answer Equity approach

Multiple Choice Single Answer
Question The total of direct & indirect material, labour & expenses is called :-
Correct Answer Total cost of production
Your Answer Prime cost

Multiple Choice Multiple Answer
Question Profit sharing plans can be on :-
Correct Answer Industry basis , Locality basis , Unit basis
Your Answer Industry basis , Locality basis , Unit basis

Select The Blank
Question Persons interested in enhancing their reputations and receiving recognition may respond to ________.
Correct Answer Verbal praise
Your Answer Verbal praise

Multiple Choice Multiple Answer
Question For the valuation of rent free accommodation, 'Salary' includes :
Correct Answer D A , Bonus , Education Allowance
Your Answer D A , Education Allowance

Multiple Choice Single Answer
Question Towns are getting converted into cities and cities into :-
Correct Answer Metro
Your Answer Metro

Multiple Choice Multiple Answer
Question Scanlon plan of profit sharing aims at :-
Correct Answer Workers participation , Reduction of cost of operation of increased production , Sharing in gains
Your Answer Workers participation , Reduction of cost of operation of increased production , Sharing in gains

Multiple Choice Single Answer
Question Indirect compensation mainly acts as :-
Correct Answer Maintenance factor
Your Answer Maintenance factor

Select The Blank
Question Overtime payment given to the worker due to general pressure of work is treated as ________ cost.
Correct Answer Indirect
Your Answer Indirect

Multiple Choice Multiple Answer
Question Which of the following are used to compensate major executives?
Correct Answer Straight salaries , Bonuses , Profit sharing
Your Answer Straight salaries , Bonuses , Profit sharing

Multiple Choice Single Answer
Question Long-term wage Incentive plans are useful, where :-
Correct Answer Jobs are inter-related
Your Answer Jobs are inter-related

Multiple Choice Single Answer
Question Group incentive payments are :-
Correct Answer Less than individual ones
Your Answer Less than individual ones

Multiple Choice Single Answer
Question The criterion, that means, wages paid should be adequate to enable an employee to maintain himself and his family at a reasonable level of existence is :-
Correct Answer The living wage
Your Answer The living wage

Multiple Choice Single Answer
Question According to the thinking and beliefs of these young persons, the major need filled by marriage is biological and this can be easily satisfied out of :-
Correct Answer Wedlock
Your Answer Wedlock

True/False
Question The payment of profit sharing plan is of uncertain nature because of uncertainty of profits to the company.
Correct Answer True
Your Answer True

Read more »

Posted in: Compensation Management (Set - 3)

Compensation Management - 7

LIST OF ATTEMPTED QUESTIONS AND ANSWERS 1st

Multiple Choice Single Answer
Question The wage and salary administration is concerned with the financial aspect of need, reward and :-
Correct Answer Motivation
Your Answer Motivation

Multiple Choice Multiple Answer
Question Documents used for wage analysis are :-
Correct Answer Job cards , Wage sheets
Your Answer Job cards , Wage sheets

Multiple Choice Single Answer
Question Basic purpose of Wage and Salary administration is to establish and maintain an equitable :-
Correct Answer Wage and Salary structure
Your Answer Compensation structure

True/False
Question IT jobs still remain the best paying jobs in the country.
Correct Answer True
Your Answer True

Match The Following
Question Correct Answer Your Answer

Francis A Walker 1840 - 1897 1772 - 1823

David Ricardo 1772 - 1823 1849 - 1883

Adam Smith 1723 - 1790 1723 - 1790

Karl Marx 1849 - 1883 1840 - 1897


True/False
Question Many companies have chosen some what shady reimbursement or perquisite in order to contain the overall cost in the assumption of being non taxable.
Correct Answer True
Your Answer True

Multiple Choice Multiple Answer
Question Differential piece rate system is suitable where :-
Correct Answer Fixed costs are higher in proportion to veriable cost , It is possible to count production accurately , There are standardised methods of production
Your Answer Fixed costs are higher in proportion to veriable cost , It is possible to count production accurately , There are standardised methods of production

Multiple Choice Single Answer
Question Dotcom companies were founded to go beyond :-
Correct Answer Physical business
Your Answer National boundaries

Multiple Choice Multiple Answer
Question Salesmen are usually given incentives in the form of sales commission because of :-
Correct Answer Unsupervised nature of most sales work , Tradition in the market , Assumption that incentives are needed to motivate salesman
Your Answer Unsupervised nature of most sales work , Tradition in the market , Assumption that incentives are needed to motivate salesman

Multiple Choice Multiple Answer
Question Following are avoidable causes of employees turnover :-
Correct Answer Unsatisfactory pay package , Absence of job satisfaction
Your Answer Unsatisfactory pay package , Better prospects outside , Absence of job satisfaction

Multiple Choice Multiple Answer
Question In dotcom companies, there is :-
Correct Answer Direct interaction with customers and client organizations , Reduction of capital cost , Huge no of employees
Your Answer Direct interaction with customers and client organizations , Reduction of capital cost , Huge no of employees

Multiple Choice Multiple Answer
Question Employees are paid incentives on 'Output' basis if :-
Correct Answer Units of output can be measured , Direct relationship between employee efforts and quantity of output , Jobs are standardised
Your Answer Units of output can be measured , Direct relationship between employee efforts and quantity of output , Jobs are standardised

True/False
Question Rate of change in the working force of an organisation during a period of time is known as employee turnover.
Correct Answer True
Your Answer True

True/False
Question Compensation given to an employee on termination or dismissal is considered as Salary Income.
Correct Answer True
Your Answer False

Select The Blank
Question The nature and extent of wage differential are conditioned by a ________.
Correct Answer Set of factors
Your Answer Set of conditions

Multiple Choice Single Answer
Question When a dotcom company starts earning profits, promoters are focused on the launch of:-
Correct Answer IPO
Your Answer IPO

Select The Blank
Question ________ is that portion of Dearness Allowance which Government declares to be paid for all purposes.
Correct Answer Dearness Pay
Your Answer Dearness Pay

Select The Blank
Question If the idle time is controllable and normal, its cost is treated as ________ cost.
Correct Answer Indirect
Your Answer Direct

Multiple Choice Single Answer
Question As industrialization taking place, the family values have :-
Correct Answer Changed
Your Answer Changed

Select The Blank
Question ________ are also aid to executives a certain percentage of the profits.
Correct Answer Bonuses
Your Answer Bonuses

Multiple Choice Single Answer
Question Wages of security men in a production unit comes under :-
Correct Answer Indirect labour
Your Answer Indirect labour

True/False
Question Time booking helps to ascertain direct and indirect labour costs.
Correct Answer True
Your Answer False

Multiple Choice Single Answer
Question Characteristic of a good compensation system is :-
Correct Answer Higher the efficiency of worker, higher is compensation.
Your Answer Higher the efficiency of worker, higher is compensation.

True/False
Question To maintain best manpower in the organization, Management Incentive Plan based on the individual performance is necessary.
Correct Answer True
Your Answer True

Select The Blank
Question Payment to out workers is done on ________ basis.
Correct Answer Monthly
Your Answer Piece rate.

Multiple Choice Single Answer
Question Expenses incurred by business for packing & packaging, advertisement, sales promotion is called :-
Correct Answer Overheads
Your Answer Overheads

True/False
Question With about 2-5 years of experience, an employee can move upto manager level from executive level in IT industry.
Correct Answer True
Your Answer True

Multiple Choice Single Answer
Question Variance analysis is done in case of :-
Correct Answer Standard costing
Your Answer Standard costing

Select The Blank
Question Compensation system should reduce ________.
Correct Answer Employee turnover
Your Answer Employee turnover

True/False
Question Economic system does result in the concentration of wealth.
Correct Answer False
Your Answer True

Select The Blank
Question ________ provides benefits at the time of retirement/ death / following disability of worker.
Correct Answer Deferred plan
Your Answer Deferred plan

Multiple Choice Single Answer
Question The expenditure on remuneration of workers/employees responsible for conversion of raw material into finished products is called :-
Correct Answer Direct labour
Your Answer Direct expenses

Multiple Choice Single Answer
Question If the employment is merely incidental to the exercise of a profession, the gains from such employment would be :-
Correct Answer Professional earnings
Your Answer Professional earnings

Select The Blank
Question Leave pay of current year is treated as ________.
Correct Answer Direct Expenses
Your Answer Direct Expenses

True/False
Question Group incentive system is more widely prevalent in the Indian industry than the system of individual incentive.
Correct Answer True
Your Answer True

Multiple Choice Single Answer
Question The wage structure or grade is comprised of jobs of appropriately equal difficulty or importance as determined by :-
Correct Answer Job evaluation
Your Answer Job evaluation

Select The Blank
Question ________ is financial / quantitative statement prepared & approved prior to a period of time.
Correct Answer Budget
Your Answer Budget

Multiple Choice Multiple Answer
Question Wage differentials are of following factors :-
Correct Answer Difference in labour efficiency , Social esteem , Occupation
Your Answer Difference in labour efficiency , Social esteem , Occupation

Multiple Choice Multiple Answer
Question Objectives laid down by I.L.O. are :-
Correct Answer Abolish malpractices , Abuse in wage payment , Promote Trade Union
Your Answer Abolish malpractices , Abuse in wage payment , Promote Trade Union

Multiple Choice Multiple Answer
Question Level II in junior managers comprises of :-
Correct Answer Engineers , Officers , Senior Engineers
Your Answer Engineers , Officers , Senior Engineers

Match The Following
Question Correct Answer Your Answer

Bonus to top management Overall corporate results Overall corporate results

Time' incentive plan Delays in work are frequent Unsupervised nature of job

Output' Incentive plan Units of output are measurable Units of output are measurable

Commission' to salesmen Unsupervised nature of job Group incentive


Multiple Choice Multiple Answer
Question Major components of compensation :-
Correct Answer Salary , Basic salary , Consolidated salary
Your Answer Salary , Consolidated salary

Multiple Choice Multiple Answer
Question Incentive schemes suffer because of :-
Correct Answer Tendency among workers to sacrifice quality for quantity , Rapid progress in technology , Disregard for safety regulations by workers
Your Answer Tendency among workers to sacrifice quality for quantity , Rapid progress in technology , Disregard for safety regulations by workers

Multiple Choice Multiple Answer
Question Aspects which were considered while determining pay ranges are :-
Correct Answer Maintain adequate difference between supervisors & subordinates , Attention must be given to handling upward changes in wage structure
Your Answer Maintain adequate difference between supervisors & subordinates , Attention must be given to handling upward changes in wage structure

Multiple Choice Single Answer
Question In recent times, in addition to stock options, employees of dotcom companies are demanding :-
Correct Answer Cash bonus
Your Answer Cash bonus

Select The Blank
Question Life and Medical insurance or reimbursement of medical bills is considered as a part of ________.
Correct Answer Perks
Your Answer Social security

Read more »

Posted in: Compensation Management (Set - 3)

Strategic Finance - 5

LIST OF ATTEMPTED QUESTIONS AND ANSWERS
True/False
Question Accounting standards (AS - 13) is now mandatory.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question Exit costs are classified into 3 categories namely :-
Correct Answer Lost efficiency prior to separation , Job vacancy cost during the new
search , Termination pay
Your Answer Job vacancy cost during the new search , Termination pay ,
Recruiting new employee as a replacement of the left employee
Multiple Choice Multiple Answer
Question A firm's current assets include :-
Correct Answer Marketable securities , Receivables , Inventory
Your Answer Marketable securities , Receivables , Inventory
Multiple Choice Multiple Answer
Question In a merger decision, the value of a firm depends upon:-
Correct Answer Earnings , Operating characteristics of acquiring firm , Financial
characteristics of acquiring firm
Your Answer Earnings , Manpower of the acquiring firm , Financial characteristics
of acquiring firm
Multiple Choice Multiple Answer
Question A company is permitted to buy back its shares through stock
exchange in the following situations :-
Correct Answer The company shall complete the verification of acceptances within
15 days of the payout , The identity of the company as a purchaser
shall appear on the electronic screen when the order is placed , The
buy back shall be made only on stock exchanges with electronic
trading facility
Your Answer The company shall complete the verification of acceptances within
15 days of the payout , The identity of the company as a purchaser
shall appear on the electronic screen when the order is placed , It is
not mandatory to specify the maximum price at which the buy back
will be made
True/False
Question A merger will make sense to the acquiring firm if its shareholders
benefit.
Correct Answer True
Strategic Finance II Page 2 of 8
Your Answer True
Select The Blank
Question ________ Assets in the balance sheet are normally excluded from
the value of total assets.
Correct Answer Intangible
Your Answer Intangible
Multiple Choice Single Answer
Question What is a very important factor in any kind of merger?
Correct Answer Exchange ratio
Your Answer Pre merger price
Select The Blank
Question A shareholder expects a higher rate of return as a firm's
compensation for ________.
Correct Answer Increased risk
Your Answer Investment in projects to improve prestige or power
True/False
Question Usually cost data is perfect for ABC Analysis & distribution.
Correct Answer False
Your Answer True
Select The Blank
Question Forward or backward integration is a characteristic of ________.
Correct Answer Vertical Mergers
Your Answer Vertical Mergers
Multiple Choice Single Answer
Question Segment assets are determined after :-
Correct Answer Deducting related allowances / provisions reported as direct offsets
Your Answer Deducting income tax assets
Multiple Choice Single Answer
Question Acceptable audit requirements cannot be overlooked even under the
pressure of :-
Strategic Finance II Page 3 of 8
Correct Answer Timeliness & turnaround
Your Answer Mergers & acquisitions
Multiple Choice Single Answer
Question Which of the following is NOT a disadvantage of deferred payment
plan to the acquiring firm?
Correct Answer There is built - in cushion to the acquiring firm as total payment is not
made at the time of acquisition
Your Answer Freedom of operation to the management of the newly acquired firm
True/False
Question A single organisation model serves to keep all individual initiatives to
be targeted into a co-ordinated plan.
Correct Answer True
Your Answer True
True/False
Question Assets held as stock - in - trade are also investments.
Correct Answer False
Your Answer True
Multiple Choice Single Answer
Question In an aggressive approach :-
Correct Answer There is a very large risk of shortage of funds
Your Answer There is a very large risk of shortage of funds
True/False
Question Organisational changes are similar to mission changes.
Correct Answer True
Your Answer False
Multiple Choice Multiple Answer
Question The internal staffing performance indicators are :-
Correct Answer Sales per employee , Recovery rate , Utilization %
Your Answer Sales per employee , Recovery rate , Utilization %
Select The Blank
Strategic Finance II Page 4 of 8
Question The most popular kind of dividend policy is one that pays a
________.
Correct Answer Regular, steady dividend
Your Answer Regular, steady dividend
Match The Following
Question Correct Answer Your Answer
Amount involved in buy
back
Not to exceed 25 % of the
total paid up capital
Not to exceed 25 % of the
total paid up capital
Articles of Association Authorize buy back of
securities
Resolution permitting the
buy back of shares
Board of Directors Resolution permitting the
buy back of shares
Authorize buy back of
securities
Shares to be bought back Fully paid up Fully paid up
Multiple Choice Single Answer
Question A good accounting system does NOT have the characteristics such
as :-
Correct Answer Does not cover decisions over the life cycle
Your Answer Takes into account time as an important parameter
Multiple Choice Single Answer
Question Fixed price tender offers are accompanied by an abnormal
announcement period return of :-
Correct Answer 8 - 10 %
Your Answer 6 - 8 %
Multiple Choice Multiple Answer
Question The external staffing performance indicators include :-
Correct Answer Compensation per Re. Profit , Personnel services head count , Profit
per head
Your Answer Compensation per Re. Profit , Personnel services head count ,
Recovery rate
Match The Following
Question Correct Answer Your Answer
Trust receipt Specifically identified by
serial number or other
means
Specifically identified by
serial number or other
means
Terminal warehouse receipt Inventory is stored with a
public or terminal
Inventory is stored with a
public or terminal
Strategic Finance II Page 5 of 8
warehousing company warehousing company
Floating lien Loose arrangement as the
lender may find it difficult to
police
Well suited for financial
good inventories of capital
goods
Chattel mortgage Well suited for financial
good inventories of capital
goods
Affords a higher degree of
control over the collateral
Select The Blank
Question In today's fast moving world, the quickest way to get information on a
firm is through ________.
Correct Answer Internet
Your Answer Internet
Multiple Choice Single Answer
Question Companies often need to value its own :-
Correct Answer Shares
Your Answer Shares
Multiple Choice Multiple Answer
Question Long term financing strategy is used by a firm to meet :-
Correct Answer Fixed assets requirements , Permanent working capital requirements
, Portion of fluctuating working capital requirement
Your Answer Fixed assets requirements , Permanent working capital requirements
True/False
Question For determining exchange ratio, the model developed by Conn &
Nielson is used.
Correct Answer True
Your Answer True
Select The Blank
Question usually credit lines are established for a period of ________.
Correct Answer 1 year
Your Answer 3 years
Multiple Choice Multiple Answer
Question Shortcomings of accounting numbers consist of the following :-
Strategic Finance II Page 6 of 8
Correct Answer Firms use different kind of accounting methods , Business risk and
financial risk do not have any influence on accounting numbers
Your Answer Dividend policy has lot of influence on accounting numbers ,
Business risk and financial risk do not have any influence on
accounting numbers , There is a serious relationship between
economic value and profit
Select The Blank
Question Investors can reduce the company related risk by diversification of
their investments in ________.
Correct Answer Shares of a large number of companies
Your Answer Mutual funds
True/False
Question Making decision on dividend is a very crucial area of financial
management for a firm.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question The following is not a factor for reduction in the life of an asset by
obsolescence :-
Correct Answer No study of market demand for a product / service
Your Answer Legal restrictions
Multiple Choice Multiple Answer
Question Due to diversification employees seek:-
Correct Answer Job security , Better opportunities within the firm , Higher
compensation
Your Answer Job security , Better opportunities within the firm , More perks &
benefits , Higher compensation
Multiple Choice Single Answer
Question Research into true human resources accounting began in :-
Correct Answer 1960`s
Your Answer 1994
Select The Blank
Question Segment assets are ________.
Correct Answer Directly attributable to the segment
Your Answer Directly attributable to the segment
Strategic Finance II Page 7 of 8
True/False
Question AS 13 statement does not deal with operating or finance leases.
Correct Answer True
Your Answer True
Select The Blank
Question The costs should be gathered & allocated within the organisation at
the ________ structural layer.
Correct Answer Lowest possible
Your Answer Lowest possible
Multiple Choice Single Answer
Question Value implies that something has :-
Correct Answer Worth
Your Answer Worth
Multiple Choice Multiple Answer
Question Examples of accounting methods used by firm are :-
Correct Answer FIFO , LIFO , Accrual Accounting
Your Answer FIFO , LIFO , Accrual Accounting
Multiple Choice Multiple Answer
Question The main assumptions for stock repurchase models are as follows :-
Correct Answer The market is efficient , There is perfect competition in the securities
market
Your Answer The market is efficient , Offers are minimum limit offers. , Investors
are not very keen to maximize the value of their investment
Multiple Choice Multiple Answer
Question As a general rule, an asset is :-
Correct Answer A good or a right that a firm owns in a determined moment ,
Prepayment adjustments , Capitalized expenses
Your Answer A good or a right that a firm owns in a determined moment ,
Prepayment adjustments , Capitalized expenses
True/False
Question It is easy to find a risk free security.
Correct Answer False
Strategic Finance II Page 8 of 8
Your Answer False
Multiple Choice Single Answer
Question The earning power of the company approach includes :-
Correct Answer Mainly discounting of all future earnings
Your Answer Mainly discounting of all future earnings
Select The Blank
Question During the costing process, we look at ________.
Correct Answer Resource consumption
Your Answer Resource consumption
Select The Blank
Question Mature companies with stable earnings generally pay out ________.
Correct Answer A high proportion of earnings
Your Answer A high proportion of earnings

Read more »

Posted in: Strategic Finance (Set III)

Production and Operations Management - 17

Searching for JOBS: http://naukrimantra.blogspot.com
Multiple Choice Single Answer
Question
One of the sophisticated operations research techniques used in material planning is
Correct Answer
Dynamic programming
Your Answer
Dynamic programming

True/False
Question
Job life is one of the factors that influence Process Planning
Correct Answer
True
Your Answer
True

Multiple Choice Multiple Answer
Question
Following are some of the Principles of Management advocated by F W Taylor
Correct Answer
Selection of best worker for each particular task , Division of work between worker and management , Training and development of the workmen
Your Answer
Selection of best worker for each particular task , Division of work between worker and management , Training and development of the workmen

Multiple Choice Single Answer
Question
Product layout is employed for manufacturing following products
Correct Answer
refrigirators
Your Answer
ships

Select The Blank
Question
Work study is also called ________ study
Correct Answer
Time and Motion
Your Answer
Job

Multiple Choice Multiple Answer
Question
Which of the following situations demand the technical consideration while selecting a job for method study?
Correct Answer
Jobs having inconsistent quality , Operations inviting frequent requests from supervisors for relaxation in allowed time because of variations in materials and tool performance , Jobs in which too many man-hours are spend in checking and rechecking work
Your Answer
Jobs having inconsistent quality , Operations inviting frequent requests from supervisors for relaxation in allowed time because of variations in materials and tool performance , Jobs in which too many man-hours are spend in checking and rechecking work

True/False
Question
Quality control determines what, when, and how much to inspect while inspection actually conducts examination of goods.
Correct Answer
True
Your Answer
True

Select The Blank
Question
The ________ is the maximum percentage defective that for the purpose of sampling inspection can be considered satisfactory as a process average.
Correct Answer
Acceptable quality level
Your Answer
Producer's risk

Select The Blank
Question
The term ________ emplies the foregone profit due to inability of company to produce.
Correct Answer
Opportunity cost
Your Answer
Opportunity cost

True/False
Question
All activities must not be tied up into the network
Correct Answer
False
Your Answer
False

True/False
Question
F W Taylor devised a system for classifying motions into basic divisions called Therbligs
Correct Answer
False
Your Answer
True

Multiple Choice Multiple Answer
Question
Which of the following may be the objectives of project crashing?
Correct Answer
To achieve uniformity in requirement of resources , To complete the project in the least possible time , To reduce project cost below it's normal cost
Your Answer
To complete the project in the least possible time , To achieve uniformity in requirement of resources , To improve the labour efficiency

Multiple Choice Multiple Answer
Question
What is indicated by the hugging points lying close to mean of the process in X bar-R- control chart?
Correct Answer
Biases in measurements , Recording done without actual measurements , Improper selection of samples
Your Answer
Recording done without actual measurements , Improper selection of samples

Multiple Choice Single Answer
Question
Following is one of the techniques used for Material Planning for high value material
Correct Answer
MRP
Your Answer
MRP

Select The Blank
Question
The ________ is the probability that a good lot will be rejected by the sampling plan.
Correct Answer
Producer's risk
Your Answer
Producer's risk

Multiple Choice Single Answer
Question
One of the characterstic of layout is about the flow of material / personnel. In a good layout the flow should be
Correct Answer
Unidirectional
Your Answer
Unidirectional

True/False
Question
The event numbers as far as possible reflect the logical relationships of the activities.
Correct Answer
True
Your Answer
False

Multiple Choice Multiple Answer
Question
Material Requirement Planning is very useful in following situations
Correct Answer
Long Lead time for procurement , Several levels of assemblies in product , Long manufacturing cycle
Your Answer
Long Lead time for procurement , Several levels of assemblies in product , Long manufacturing cycle

True/False
Question
Cent percent inspection is often more practical and economical than sampling inspection.
Correct Answer
False
Your Answer
False

Select The Blank
Question
The ________ must ensure that the product satisfy the functional requirements of it's usage.
Correct Answer
Quality of design
Your Answer
Quality of conformance

True/False
Question
Both, preventive and breakdown maintenance work must be assigned to the same team.
Correct Answer
False
Your Answer
False

Multiple Choice Single Answer
Question
Following is one of the tasks of Production Control
Correct Answer
Actual issue of forms and documents
Your Answer
Actual issue of forms and documents

Multiple Choice Single Answer
Question
Process Engineer does not get sufficient time for designing tooling for most economic production run when
Correct Answer
Delivery time is less
Your Answer
Delivery time is less

Multiple Choice Multiple Answer
Question
Components of Production Management include
Correct Answer
Capacity Planning , Job Design , Production Planning
Your Answer
Capacity Planning , Production Planning , Manpower Planning

Multiple Choice Multiple Answer
Question
Which of the following products should be produced by using mass production?
Correct Answer
Refrigerator , Tyre for automobile , Television Set
Your Answer
Refrigerator , Tyre for automobile , Television Set

Multiple Choice Single Answer
Question
The process of changing inputs into outputs thereby adding some value to entity can be defined as
Correct Answer
Operation
Your Answer
Manufacturing

Select The Blank
Question
A good maintenance system is not a luxary but a ________.
Correct Answer
Necessity
Your Answer
Necessity

Multiple Choice Single Answer
Question
What is the specific name for the Gantt chart when it shows at a glance the scheduling of various operations involved in a job?
Correct Answer
Job Schedule
Your Answer
Load Chart

Select The Blank
Question
A set of activities to keep an equipment in the specified condition is called as ________.
Correct Answer
Maintenance
Your Answer
Maintenance

Multiple Choice Single Answer
Question
What do you mean by lowest possible direct cost required to complete an activity within it's crashed time?
Correct Answer
Crash cost
Your Answer
Crash cost

Multiple Choice Multiple Answer
Question
Which of the following factors decide the choice between the cent percent and sampling inspection?
Correct Answer
Nature of inspection , Natural tolerance versus design tolerance , Vendor's quality rating
Your Answer
Nature of inspection , Natural tolerance versus design tolerance , Vendor's quality rating

Select The Blank
Question
The ________ is the maintenance work initiated on a result of knowledge of the condition of an item from routine or continuous checking.
Correct Answer
Condition monitoring
Your Answer
Condition monitoring

Multiple Choice Multiple Answer
Question
Which of the following are examples of attributes?
Correct Answer
Cracks , Burrs , Texture
Your Answer
Cracks , Burrs , Texture

Multiple Choice Single Answer
Question
Which of the following is the criteria for the percentage defectives in the zone of the indecision?
Correct Answer
Lots having the percentage defective more than AQL but less than LPTD
Your Answer
Lots having the percentage defective more than AQL but less than LPTD

Multiple Choice Single Answer
Question
In mass/batch production organizations where goods are produced for stocking, Work Order is raised on the basis of
Correct Answer
Sales Programme
Your Answer
Sales Order

Match The Following
Question
Correct Answer
Your Answer
Fixed Position Layout
Project Layout
Functional Layout
Product Layout
Line Layout
Project Layout
Process Layout
Functional Layout
job layout
Combined Layout
Mixed Layout
Mixed Layout

Multiple Choice Single Answer
Question
What do you understand by the measurement of work to establish allowed time for a job for the defined method?
Correct Answer
Work measurement
Your Answer
Work measurement

Select The Blank
Question
In case of an OC curve, the risk of rejecting a good quality lot may vary between ________.
Correct Answer
0.01 to 10%
Your Answer
0.01 to 10%

True/False
Question
Objective of Work Study is to improve Productivity
Correct Answer
True
Your Answer
False

Multiple Choice Multiple Answer
Question
Which are the distinct functions of scientific quality control?
Correct Answer
Acceptance function , Preventive function , Assurance function
Your Answer
Acceptance function , Feedback function , Preventive function

Match The Following
Question
Correct Answer
Your Answer
Interruption for machine utilisation
Preventive maintenance
Preventive maintenance
Input for scheduling
Overlapping of operations
Strings
Technique of scheduling
Critical Path Analysis
Critical Path Analysis
Scheduling Device
Strings
Blackboard

Select The Blank
Question
An Ideal OC curve is ________ shaped curve that accpets all the lots with quality equal to or better than AQL .
Correct Answer
Rectangular
Your Answer
Rectangular

True/False
Question
Breakdown of machines, absenteeism of worker does not dislocate the manufacturing activity in process layout
Correct Answer
True
Your Answer
True

True/False
Question
Since value of c can never be negativee, hence" if LCLp works out to be negative, it is taken as zero."
Correct Answer
True
Your Answer
True

Multiple Choice Single Answer
Question
Who prepares the daily production report?
Correct Answer
Shop Supervisor
Your Answer
Worker

True/False
Question
The dispatching function is of very importance in flow and mass production units.
Correct Answer
False
Your Answer
True

Multiple Choice Multiple Answer
Question
Which are major benefits of identifying the critical path?
Correct Answer
It helps to identify the set of activities and events which are critical and as such must be carefully controlled and monitored , It identifies activities to be given preference in allocation of resources. , It helps to exercise "control by exception".
Your Answer
It helps to identify the set of activities and events which are critical and as such must be carefully controlled and monitored , It helps to exercise "control by exception".

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Posted in: Production and Operations Management(Set-VI)

Production and Operations Management - 16

POM assgn
True/False
Question
Site selection should also take into account topography and soil structure of the land.
Correct Answer
True
Your Answer
True

Multiple Choice Single Answer
Question
Which manufacturing method is ideal for the use of air gauges as inspection device?
Correct Answer
Mass
Your Answer
Batch

True/False
Question
Kanban system is essentially a computer based system for production scheduling and control
Correct Answer
False
Your Answer
False

Multiple Choice Multiple Answer
Question
Which are three different bases to establish an activity time?
Correct Answer
Past experience , Judgement , Historical data
Your Answer
Past experience , Judgement , Historical data

True/False
Question
Inspection order is must even for simple jobs which can be inspected by shop inspector with the tooling available on shop.
Correct Answer
False
Your Answer
False

Multiple Choice Single Answer
Question
Which of the following policies is advisable in case of low product variety and large volumes?
Correct Answer
Low Skilled Labour & Special Purpose Machines
Your Answer
Semiskilled Labour & General Purpose Machines

Select The Blank
Question
Capacity decisions have a direct influence on performance of production system in respect of ________
Correct Answer
Delivery performance
Your Answer
Delivery performance

True/False
Question
In case of X bar, if the process is not under control indicated by some points falling outside the control limits, such points outside the control limits are eliminated and new trial control limits for the remaining points are computed.
Correct Answer
True
Your Answer
True

Select The Blank
Question
The ________ pertain to the climatic conditions which the component , product or material should withstand.
Correct Answer
Environmental specifications
Your Answer
Environmental specifications

Select The Blank
Question
The ________ is necessary when the job requires detailed of one or more of the job characteristics with the help of special equipment which is not available at the producing company.
Correct Answer
Inspection order
Your Answer
Job card

Match The Following
Question
Correct Answer
Your Answer
Crash cost of an activity
Cc
Cc
Normal time of an activity
Tn
Cn
Crash time of activity
Tc
Tc
Normal cost of an activity
Cn
Tn

True/False
Question
Lubrication survey should never be done for a new machine.
Correct Answer
False
Your Answer
False

Multiple Choice Single Answer
Question
A good plant layout helps in
Correct Answer
Reducing handling costs
Your Answer
Reducing handling costs

Multiple Choice Single Answer
Question
Out of two basic criteria for the selection of a manufacturing method, one is, it must be able to meet the specifications of final product and the other is, it must be
Correct Answer
Cost effective method
Your Answer
Cost effective method

Multiple Choice Multiple Answer
Question
Which of the following is a part of preparing manufacturing order set as a primary function of dispatching?
Correct Answer
Operational layouts , Move orders , Pre-filled stores issue orders
Your Answer
Operational layouts , Move orders , Pre-filled stores issue orders

Select The Blank
Question
A ________ is another form of subcontracting.
Correct Answer
Hiring capacity
Your Answer
Hiring capacity

Multiple Choice Multiple Answer
Question
Which are the major types of defects?
Correct Answer
Minor , Major , Critical
Your Answer
Minor , Critical , General

Multiple Choice Single Answer
Question
Which kind of labour force is required in case of Jobbing Production?
Correct Answer
Highly Skilled
Your Answer
Highly Skilled

Multiple Choice Multiple Answer
Question
Which are the sources of information to update the progress card daily?
Correct Answer
Detachable ticket , Daily production report , Job Card
Your Answer
Detachable ticket , Daily production report , Job Card

True/False
Question
In case of forward pass computation, the earliest event time of the first event is zero.
Correct Answer
True
Your Answer
True

Multiple Choice Multiple Answer
Question
Which are the distinct functions of scientific quality control?
Correct Answer
Acceptance function , Preventive function , Assurance function
Your Answer
Acceptance function , Preventive function , Assurance function

Multiple Choice Multiple Answer
Question
Which of the following are examples of specifications?
Correct Answer
Commercial standards , Assembly and testing instructions , Bill of material
Your Answer
Production schedule , Commercial standards , Bill of material

Multiple Choice Single Answer
Question
Technique which can help an organization to reduce inventory is called
Correct Answer
MRP
Your Answer
MRP

Multiple Choice Single Answer
Question
In case of Batch Production which kind of labour is expected?
Correct Answer
Skilled in one specific Manufacturing Process
Your Answer
Semiskilled

Multiple Choice Multiple Answer
Question
Major contributors in the development of Control Charts, Sampling plan are
Correct Answer
F H Dodge , H G Roming , Walter Schewhart
Your Answer
F H Dodge , H G Roming , Walter Schewhart

Multiple Choice Single Answer
Question
What is represented by an arrow in a network?
Correct Answer
Activity
Your Answer
Event

True/False
Question
Feasibility of time schedule requires that an activity be scheduled before any of it's predecessors are scheduled.
Correct Answer
False
Your Answer
True

Multiple Choice Single Answer
Question
Which method of critical path determination begins with the end event and moves backward to the start event of the project network?
Correct Answer
Backward pass computation
Your Answer
Backward pass computation

True/False
Question
Operation process charts though indicates the sequence of events but do not show movements.
Correct Answer
True
Your Answer
True

Multiple Choice Single Answer
Question
Which kind of relationship exists between those activities which can be carried out simultaneously and both activities require definite time to finish?
Correct Answer
Concurrent activities
Your Answer
Concurrent activities

True/False
Question
One major difference between CPM and PERT is the former's adaptability for the projects where high degree of uncertainty prevails and activity times during performance are expected to vary considerably for certain activities.
Correct Answer
False
Your Answer
False

Multiple Choice Multiple Answer
Question
Following are some of the Principles of Management advocated by F W Taylor
Correct Answer
Selection of best worker for each particular task , Division of work between worker and management , Training and development of the workmen
Your Answer
Selection of best worker for each particular task , Division of work between worker and management , Training and development of the workmen

Multiple Choice Single Answer
Question
Inadequate production capacity ultimately leads to
Correct Answer
Poor Customer Service
Your Answer
Poor Machine Utilization

Multiple Choice Multiple Answer
Question
Which of the following schedules are recommended to prepare and follow as a part of preventive maintenance system?
Correct Answer
Preventive inspection schedule , Cleaning and upkeep schedule , Lubrication schedule
Your Answer
Preventive inspection schedule , Cleaning and upkeep schedule , Lubrication schedule

Multiple Choice Single Answer
Question
What is the reason of fluctuations, if the control chart evaluates that the process is in a state of statistical control?
Correct Answer
Random variability
Your Answer
Random variability

True/False
Question
Even in a small set up wherein maintenance of a machine is looked after by a mechanic cum worker, he should report directly to the person responsible for the manufacturing operations.
Correct Answer
True
Your Answer
True

Multiple Choice Single Answer
Question
What do you mean by the chart on which the major activities and entry points of materials are recorded to have graphic view of operations and inspections involved in the process?
Correct Answer
Operation process chart
Your Answer
Operation process chart

Multiple Choice Single Answer
Question
Plant Layout decisions are considered to be
Correct Answer
Strategic
Your Answer
Strategic

Multiple Choice Multiple Answer
Question
What are the uses of the instruction manual provided by the manufacturer of a machine?
Correct Answer
It gives instructions regarding installation and operation of the equipment , It contains note on common troubles with causes and remedies for troubleshooting , It enlists points, frequency and type of lubrication
Your Answer
It gives instructions regarding installation and operation of the equipment , It contains note on common troubles with causes and remedies for troubleshooting , It enlists points, frequency and type of lubrication

Multiple Choice Single Answer
Question
When should operator or supervisor is supposed to sign the perforated route sheet?
Correct Answer
After completion of operation
Your Answer
After completion of operation

Multiple Choice Multiple Answer
Question
Which of the following situations demand that the human consideration should be given preference over other considerations?
Correct Answer
Inconsistent earnings where the earnings are tied to output , Poor morale evidenced by petty or trivial complaints , Repeated cases of accidents and health hazards
Your Answer
Excessive rejections , Poor morale evidenced by petty or trivial complaints , Repeated cases of accidents and health hazards

True/False
Question
A network can have more than one starting event but completion event must be only one.
Correct Answer
False
Your Answer
True

Multiple Choice Single Answer
Question
Which is the ideal place to write a description of an activity in a network?
Correct Answer
Above the arrow
Your Answer
Above the arrow

Multiple Choice Multiple Answer
Question
Which features should be covered by the specifications of materials while defining the qualitative requirement?
Correct Answer
Material composition , Dimensions , Any heat treatment if required
Your Answer
Material composition , Dimensions , Any heat treatment if required

Match The Following
Question
Correct Answer
Your Answer
When to inspect
Stages of inspection
Stages of inspection
What to inspect
Specification
Specification
How to inspect
Inspection devices
Inspection devices
How much to inspect
Sampling or cent percent inspection
Sampling or cent percent inspection

Multiple Choice Multiple Answer
Question
How the concept of float is helpful to planners?
Correct Answer
To decide priorities in allocation of resources , To minimize the requirement of resources , To prevent peaks and valleys in requirement of resources
Your Answer
To decide priorities in allocation of resources , To minimize the requirement of resources , To prevent peaks and valleys in requirement of resources

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Posted in: Production and Operations Management(Set-VI)

Financial Management - 22

LIST OF ATTEMPTED QUESTIONS AND ANSWERS



True/False
Question
The redemption of preference shares if they carry too high rate of dividend is the remedy to overcome the situation of overcapitalisation
Correct Answer
True
Your Answer
True

Select The Blank
Question
When a company issues bonus shares ________ of the company get reduced
Correct Answer
Reserves
Your Answer
Reserves

Multiple Choice Single Answer
Question
Current assets is in the form of
Correct Answer
Receivables
Your Answer
Investments

Multiple Choice Single Answer
Question
The rate of return which computes the average annual yield on the net investment in the project is known as
Correct Answer
Accounting rate of return
Your Answer
Accounting rate of return

Select The Blank
Question
Turnover ratios measures how efficiently the ________ are employed by the firm
Correct Answer
Assets
Your Answer
Profits

Multiple Choice Multiple Answer
Question
Debt Service coverage ratio may be considered to be one of the most important ratios calculated by the
Correct Answer
Bankers , Financial Institutions
Your Answer
Bankers , Financial Institutions




Multiple Choice Multiple Answer
Question
Advantages of cash flow statement are
Correct Answer
Helps in efficient cash management , Discloses the movements of cash , Discloses the success or failure of cash planning
Your Answer
Helps in efficient cash management , Discloses the movements of cash , Discloses the success or failure of cash planning , Represents real liquid position

True/False
Question
Debt Service Coverage Ratio is one of the most important ratios calculated by the bankers of financial institutions giving long term finance to the organisation
Correct Answer
True
Your Answer
True

Multiple Choice Single Answer
Question
The period that indicates the period within which the discounted cash inflows equal to the discounted cash outflows involved in the project is termed as
Correct Answer
Discounted Pay back period
Your Answer
Pay Back period

Multiple Choice Single Answer
Question
Which important accounting ratios would be used by a shareholder who is examining his portfolio and who is to decide whether he should hold or sell his shares in the company
Correct Answer
Earning per share
Your Answer
Liquid ratio

Multiple Choice Single Answer
Question
The main function of finance under the traditional approach comprises of
Correct Answer
Procurement of funds
Your Answer
Procurement of funds

Multiple Choice Single Answer
Question
The cost which remains constant upto a certain sales revenue and increases if the sales revenue increases beyond a certain point is termed as
Correct Answer
Semi-variable cost
Your Answer
Semi-variable cost

Multiple Choice Single Answer
Question
Financing consists of the raising, providing, managing of all the money, capital or funds of any kind to be used in connection with the business' is defined by
Correct Answer
Bonneville and Dewey
Your Answer
Bonneville and Dewey

Multiple Choice Multiple Answer
Question
The sources of cash are
Correct Answer
Cash from operations , sale of machinery , Issue of new shares
Your Answer
Cash from operations , Issue of new shares

True/False
Question
Credit rating does not create any legal relationship between the rating agency and the investor
Correct Answer
True
Your Answer
True

Multiple Choice Single Answer
Question
For the calculation of Operating Profit / Loss , Goodwill written off should be
Correct Answer
added to the Net Profit as per Profit and loss account
Your Answer
ignored

Multiple Choice Single Answer
Question
The traditional approach to financial management refers only to the procurement of funds by
Correct Answer
Corporate entity
Your Answer
Corporate entity

True/False
Question
Loans from financial corporations etc. are sources of cash
Correct Answer
True
Your Answer
True

True/False
Question
According to Net Operating Income Approach there exists a direct relationship between the capital structure and valuation of the firm and the cost of capital
Correct Answer
False
Your Answer
True

Select The Blank
Question
If the project is accepted, Internal Rate of return resulting from the same should be ________ than cost of capital
Correct Answer
more
Your Answer
more

Select The Blank
Question
Redemtion of shares/debentures is categorised under ________
Correct Answer
Non-operating cash outflow
Your Answer
Non-operating cash inflow

Multiple Choice Single Answer
Question
Shortcoming of term loans from company's point of view
Correct Answer
The interest and capital repayment are obligatory payments
Your Answer
Term loans represent unsecured lending

Multiple Choice Single Answer
Question
Discounted Payback period is an improvement over the pay back period method as it considers
Correct Answer
time value of money
Your Answer
time value of money

True/False
Question
A systematic maintenance of perpetual inventory system enables to locate slow and non-moving items and to take remedial action for the same
Correct Answer
True
Your Answer
True

Multiple Choice Multiple Answer
Question
Limitations of credit rating are
Correct Answer
Credit rating is based upon the evaluation made by the agencies which may vary depending upon the experience, knowledge and individual opinion of the rators which may be biased in some cases , Credit rating is primarily based upon the past performance whereas the future prospects should be given more importance while deciding the credit rating , Multiplicity of the rating agencies can be considered to be the limitation of the credit rating
Your Answer
Credit rating is based upon the evaluation made by the agencies which may vary depending upon the experience, knowledge and individual opinion of the rators which may be biased in some cases , Credit rating is primarily based upon the past performance whereas the future prospects should be given more importance while deciding the credit rating , Multiplicity of the rating agencies can be considered to be the limitation of the credit rating , It only considers equity shares

True/False
Question
The lessor is the nominal owner of the asset as the possession and economic use of the asset rests with the lessee
Correct Answer
True
Your Answer
True

True/False
Question
The operating profit is computed as Sales Revenue Less Variable Operating Cost Less Fixed Operating cost
Correct Answer
True
Your Answer
True

Multiple Choice Multiple Answer
Question
The patterns of Dividend policy are
Correct Answer
Stable Dividend policy , Irregular Dividend policy , No immediate Dividend policy
Your Answer
Stable Dividend policy , Irregular Dividend policy , No immediate Dividend policy

Multiple Choice Multiple Answer
Question
Advantages of letter of credit to the Importer
Correct Answer
the importer can bargain for better trading terms , he is assured to get proper supply of the goods
Your Answer
the importer can bargain for better trading terms , he is assured to get proper supply of the goods

Select The Blank
Question
The ________ has been empowered to order the company that fails to repay any deposit to make the repayment of such deposits
Correct Answer
Company Law board
Your Answer
Company Law board

Multiple Choice Multiple Answer
Question
Shortcomings of Debentures from company's point of view
Correct Answer
The debenture interest and capital repayment are obligatory payments , Debenture financing enhances the financial risk associated with the firm
Your Answer
The debenture interest and capital repayment are obligatory payments , Debenture financing enhances the financial risk associated with the firm , They have lowest priority in the event of liquidation

Select The Blank
Question
Break even point is that level of sales revenue at which there is ________
Correct Answer
no profit no loss
Your Answer
no profit no loss

Multiple Choice Multiple Answer
Question
The characteristics of assets are
Correct Answer
They are acquired for use for long periods , They are ordinarily not meant for resale
Your Answer
They are acquired for use for long periods

Multiple Choice Single Answer
Question
A secured instrument usually secured by a charge on the immovable properties of the company where there is a promise to pay interest and repay principal at a stipulated period of time is known as
Correct Answer
Debentures
Your Answer
Debentures

Match The Following
Question
Correct Answer
Your Answer
Retained earnings
Residue left behind from earnings available to equity shareholders after the payment of annual dividend
Residue left behind from earnings available to equity shareholders after the payment of annual dividend
Term loan
represents a source of debt finance which is generally repayable in more than one year but less than ten years
instruments to raise long term debt capital
Lessee
Not able to claim depreciation on asset
Not able to claim depreciation on asset
Hirer
Claims the depreciation on the asset
Claims the depreciation on the asset

Select The Blank
Question
Preparation of Financial plan at the time of company promotion is ________ duty of the finance executive
Correct Answer
Non-recurring
Your Answer
Non-recurring



Multiple Choice Multiple Answer
Question
If Profit maximization is accepted as the only goal of finance function, it is criticised on the following grounds
Correct Answer
Ignores risk factor , Does not consider social obligation , Ignores quality aspect of benefits associated with a financial course of action
Your Answer
Does take into consideration time value of money , Ignores risk factor , Does not consider social obligation

Multiple Choice Multiple Answer
Question
The effects of undercapitalisation are
Correct Answer
Increase tax liability of the company , Demand of the employees to increase wages
Your Answer
Increase tax liability of the company , Credit standing of the company in the market falls down and difficulty in raising futher capital , Shares become non-transferable

Select The Blank
Question
Retained earnings is a source of ________ finance
Correct Answer
Internal
Your Answer
Internal

Select The Blank
Question
Private limited company and Public limited company are the companies based on the classification of ________
Correct Answer
Number of members
Your Answer
Number of members

Multiple Choice Multiple Answer
Question
Fixation of Inventory levels are based on the following propositions
Correct Answer
There has to be a constant watch on the actual stock level of various kinds of materials so that proper action can be taken , The various levels fixed are not fixed on a permanent basis and are subject to revision regularly
Your Answer
Ordering cost and carrying cost are directly related to each other , There has to be a constant watch on the actual stock level of various kinds of materials so that proper action can be taken , The various levels fixed are not fixed on a permanent basis and are subject to revision regularly , Minimum level indicate the level above which the actual stock should not exceed

Multiple Choice Multiple Answer
Question
Objective of perpetual inventory system are
Correct Answer
Maintenance of Bin Cards and Stores ledger in order to know about the stock in quantity and value at any given point of time , Continuous verification of physical stock to ensure that the physical balance and the book balance tallies
Your Answer
A close and strict control is facilitated on the most important items , Maintenance of Bin Cards and Stores ledger in order to know about the stock in quantity and value at any given point of time , Continuous verification of physical stock to ensure that the physical balance and the book balance tallies , It may serve as a base for the Production department for placing the material requisition slips

Multiple Choice Single Answer
Question
The motive of the company to hold the inventories in order to facilitate the smooth and uninterrupted production and sales operations is known as
Correct Answer
Transaction motive
Your Answer
Transaction motive

Select The Blank
Question
Factoring indicates the relationship between ________ and a business organisation
Correct Answer
Financial institutions
Your Answer
Financial institutions

Multiple Choice Single Answer
Question
According to the Irrelevance approach of dividend policy, the value of the company
Correct Answer
remains unaffected by the dividend policy of the company
Your Answer
remains unaffected by the dividend policy of the company

True/False
Question
Turnover ratios indicate the efficiency of the organisation to use the various kinds of assets by converting them in the form of Sales
Correct Answer
True
Your Answer
True

Read more »

Posted in: Financial Management (Set VII)

Financial Management - 21

LIST OF ATTEMPTED QUESTIONS AND ANSWERS


True/False
Question
One of the basic objectives of cash management is to maintain the optimum cash balance
Correct Answer
True
Your Answer
True

Multiple Choice Single Answer
Question
In financial terms, Profit after tax can be referred as
Correct Answer
Earning after tax
Your Answer
Gain after tax

Multiple Choice Single Answer
Question
Financing consists of the raising, providing, managing of all the money, capital or funds of any kind to be used in connection with the business' is defined by
Correct Answer
Bonneville and Dewey
Your Answer
Bonneville and Dewey

Select The Blank
Question
________ in liabilities involves inflow of funds
Correct Answer
Increase
Your Answer
Deficit

Multiple Choice Single Answer
Question
Current assets are also referred to as
Correct Answer
Working Capital
Your Answer
Working Capital

Multiple Choice Multiple Answer
Question
Goods Stolen ( Sale price Rs. 1000/- Cost Rs. 800/- ) ; Which of the accounts will be affected by this transaction
Correct Answer
Purchases Account , Loss by theft Account
Your Answer
Stock Account , Loss by theft Account

Select The Blank
Question
________ is calculated on the basis of current profits and not on the basis of retained profits
Correct Answer
Earnings per share
Your Answer
Earnings per share

Multiple Choice Single Answer
Question
The time required by the company to process the received cheque and deposit the same in the bank is called
Correct Answer
Deposit float
Your Answer
Deposit float

Multiple Choice Multiple Answer
Question
Limitations of credit rating are
Correct Answer
Credit rating is based upon the evaluation made by the agencies which may vary depending upon the experience, knowledge and individual opinion of the rators which may be biased in some cases , Credit rating is primarily based upon the past performance whereas the future prospects should be given more importance while deciding the credit rating , Multiplicity of the rating agencies can be considered to be the limitation of the credit rating
Your Answer
Credit rating is based upon the evaluation made by the agencies which may vary depending upon the experience, knowledge and individual opinion of the rators which may be biased in some cases , Credit rating is primarily based upon the past performance whereas the future prospects should be given more importance while deciding the credit rating , Multiplicity of the rating agencies can be considered to be the limitation of the credit rating , It only considers equity shares

Multiple Choice Single Answer
Question
The motive of the company to hold inventory to guard against the risk of unpredictable changes in demand and supply forces is known as
Correct Answer
Precautionary motive
Your Answer
Precautionary motive

True/False
Question
When the firm's actual bank balance is greater than the balance shown by the firm's books, the difference is called as 'payment float'
Correct Answer
True
Your Answer
True

True/False
Question
Economic Order Quantity model is a very useful model of determining the order quantity
Correct Answer
True
Your Answer
True



Multiple Choice Single Answer
Question
The Investment decisions are mainly concerned with
Correct Answer
Application of funds
Your Answer
Application of funds

Multiple Choice Single Answer
Question
The traditional approach to financial management refers only to the procurement of funds by
Correct Answer
Corporate entity
Your Answer
Corporate entity

Multiple Choice Multiple Answer
Question
The Economic Order Quantity model is based on the assumption of
Correct Answer
Placing and receiving orders is without any delay , Ordering costs and carrying costs associated with the orders are variable in nature and they behave exactly opposite to each other , The demand for the material concerned is uniform throughout the year
Your Answer
Placing and receiving orders is without any delay , Ordering costs and carrying costs associated with the orders are variable in nature and they behave exactly opposite to each other , The demand for the material concerned is uniform throughout the year

Multiple Choice Single Answer
Question
The main function of finance under the traditional approach comprises of
Correct Answer
Procurement of funds
Your Answer
Procurement of funds

Multiple Choice Multiple Answer
Question
The avenues available to the company to invest the excess cash balance on short term basis may be in the form of
Correct Answer
Commercial paper , inter-corporate bills discounting , Bank deposits
Your Answer
Commercial paper , Capital market , inter-corporate bills discounting , Bank deposits

Multiple Choice Multiple Answer
Question
External sources of funds are
Correct Answer
Funds from long term loans , Sale of fixed assets
Your Answer
Funds from operations , Funds from long term loans , Sale of fixed assets

Multiple Choice Single Answer
Question
Which of the following assets get generated during course of operations or get utilized within one year
Correct Answer
Current assets
Your Answer
Current assets

Multiple Choice Single Answer
Question
The Capital Structure decision mainly refers to the decision of
Correct Answer
Financing
Your Answer
Investment

True/False
Question
Private limited company can commence business immediately on incorporation
Correct Answer
True
Your Answer
True

Multiple Choice Multiple Answer
Question
Advantages of Debentures from company's point of view are
Correct Answer
The specific cost of debt capital represented by debentures is lower than the cost of preference or equity capital , Debenture financing does not result in dilution of control
Your Answer
The specific cost of debt capital represented by debentures is lower than the cost of preference or equity capital , Debenture financing does not result in dilution of control , Debenture prices are vulnerable to increase in interest rates

Multiple Choice Multiple Answer
Question
The causes of undercapitalisation are
Correct Answer
Company following too conservative policy for paying the dividends , Future earnings may be underestimated
Your Answer
The company might have spent huge amounts during its formation stage , Company following too conservative policy for paying the dividends , Purchasing of asssets during inflationary situations

Multiple Choice Multiple Answer
Question
The functions of a Finance Controller are :
Correct Answer
Budgeting , Record Keeping , Annual Reporting
Your Answer
Banking Relations , Budgeting , Record Keeping , Annual Reporting

Multiple Choice Single Answer
Question
The deposit receipt should contain
Correct Answer
Amount of deposit
Your Answer
Amount of deposit

Select The Blank
Question
________ is one of the current assets that takes the longest time to get converted into cash
Correct Answer
Stock
Your Answer
Debtors

Select The Blank
Question
The analytical method of inventory control which aims at concentrating efforts in those areas where attention is required most is termed as ________
Correct Answer
ABC Analysis
Your Answer
ABC Analysis

Multiple Choice Single Answer
Question
The most reliable source of getting the information about the creditworthiness of the customer who is dealing with the company presently is
Correct Answer
Past experience of the customer
Your Answer
Bank Reference

Select The Blank
Question
The fixed assets are expressed at ________
Correct Answer
Cost - Depreciation
Your Answer
Cost - Depreciation

Multiple Choice Multiple Answer
Question
Importance of capital budgeting decisions
Correct Answer
They represent the true earning assets of the firm , they are irreversible , they require assessment of future events which are uncertain
Your Answer
they are irreversible , they require assessment of future events which are uncertain

Multiple Choice Single Answer
Question
Equity Warrants are
Correct Answer
where the holders are entitled to purchase the equity shares at a specific price during the specified period
Your Answer
where the holders are entitled to purchase the equity shares at a specific price during the specified period

Multiple Choice Single Answer
Question
Gross Working Capital means
Correct Answer
Current assets
Your Answer
Current assets

True/False
Question
Economic order quantity is based on the assumption that the demand for the material concerned is uniform throughout a year
Correct Answer
True
Your Answer
True

True/False
Question
The basic objective behind fixation of the levels is to avoid overstocking and understocking
Correct Answer
True
Your Answer
True

Multiple Choice Multiple Answer
Question
Packing credit facility can take the following form
Correct Answer
Pre-shipment Packing credit , Post-shipment Packing credit
Your Answer
Pre-shipment Packing credit , Post-shipment Packing credit , Revocable Packing credit

True/False
Question
Loans from financial corporations etc. are sources of cash
Correct Answer
True
Your Answer
True

Select The Blank
Question
Investment of the venture capitalist does not exceed ________ so that the effective control of the project remains with the entrepreneur
Correct Answer
0.49
Your Answer
0.49

Select The Blank
Question
The amount of profit earned after recovering the interest on long term sources of capital is referred to as ________
Correct Answer
Profit before taxes
Your Answer
Profit before taxes





Match The Following
Question
Correct Answer
Your Answer
Net Profit ratio
Indicates that portion of sales available to the owners after consideration of all types of expenses and cost
Indicates that portion of sales available to the owners after consideration of all types of expenses and cost
Undue increase in Gross Profit ratio
Over-valuation of closing stock
Over-valuation of closing stock
Undue decrease in Gross Profit ratio
Under-valuation of closing stock
Under-valuation of closing stock
Gross Profit ratio
Indicates the relation between production cost and Sales
Indicates the relation between production cost and Sales

Multiple Choice Single Answer
Question
The weighted average cost of capital is referred to as
Correct Answer
Average cost
Your Answer
Average cost

Multiple Choice Multiple Answer
Question
If Profit maximization is accepted as the only goal of finance function, it is criticised on the following grounds
Correct Answer
Ignores risk factor , Does not consider social obligation , Ignores quality aspect of benefits associated with a financial course of action
Your Answer
Does take into consideration time value of money , Ignores risk factor , Does not consider social obligation

Select The Blank
Question
The payment of Dividend in the form of Bonus shares involves ________
Correct Answer
only transfer of retained earnings to share capital
Your Answer
only transfer of retained earnings to share capital

Select The Blank
Question
The mathematical expression of ________ is Value of material consumed / Average inventory held
Correct Answer
Inventory turnover
Your Answer
Inventory turnover

Multiple Choice Single Answer
Question
Irregular Dividend Policy refers to
Correct Answer
Dividend per share varying according to the level of earnings
Your Answer
Dividend per share varying according to the level of earnings

Multiple Choice Multiple Answer
Question
The sources of cash are
Correct Answer
Long term loans , cash from other sources
Your Answer
Long term loans , cash from other sources

Multiple Choice Multiple Answer
Question
The advantages of ratio analysis are
Correct Answer
It helps in planning and forecasting , It makes possible comparison of the performance of the different divisions of the firm , It simplifies the comprehension of financial statements
Your Answer
It helps in planning and forecasting , It makes possible comparison of the performance of the different divisions of the firm , It simplifies the comprehension of financial statements , It takes into consideration only monetary transactions

Match The Following
Question
Correct Answer
Your Answer
Safety Stock
below which the actual stock should not be allowed to fall
below which the actual stock should not be allowed to fall
ABC Analysis
Vital few Trivial Many
Vital few Trivial Many
Bill of Materials
Details of the necessary materials as well as quantity of each item
Details of the necessary materials as well as quantity of each item
Perpetual Inventory System
Maintenance of Bin Cards and Stores ledger in order to know about the stock in quantity and value at any given point of time
Maintenance of Bin Cards and Stores ledger in order to know about the stock in quantity and value at any given point of time

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Posted in: Financial Management (Set VII)