Professional Documents
Culture Documents
MCOM Exist Exam Questions
MCOM Exist Exam Questions
General
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a. the cost incurred in the past before deciding about what to do in the future
b. a cost that cannot be avoided, regardless of what is done in the future
c. what we forgo, or give up, when we make a choice or a decision
d. the additional benefit of buying an additional unit of a product
14. ___________ is a method of primary data collection
a. questionnaire b. interview
c. both of the above d. none of the above
15. In an effective marketing system, a consumer is not disillusioned by __________________
a. multiple grades b. adulteration
c. multiple prices d. all of these
16. The policy which is used to regulate govt. revenue and expenditures is called ____________
a. monetary policy b. open market operations
c. fiscal policy d. money supply
17. Law passed by legislative body or parliament of country are called _________
a. Act b. Rule
c. Ordinance d. none of them
18. Market value of all goods and services produced within a country in a given period
a. GNP b. NNP
c. GDP d. NGP
19. ___________segmentation is based on age and gender etc. of consumers
a. geographic b. behavioral
c. demographic d. psychographic
20. The financial condition of a company at certain date and provide details of the items that
company owns (assets) and the amount the company owes (liabilities).
a. cash flow statement b. owner’s equity statement
c. income statement d. balance sheet
21. The process of creating the desired image in the customer’s mind is known as
a. positioning b. segmentation
c. targeting d. management
22. Responsiveness of consumers to change in prices is termed as ____________________
a. elasticity of demand b. elasticity of supply
c. both of the above d. none of the above
23. ________________ is artificial 'legal being' endowed by law with the powers, rights,
liabilities, and duties of a natural person.
a. sole proprietorship b. cooperative
c. partnership d. corporation
24. _______________ is the development of alternative plans for possible business conditions
a. strategic planning b. contingency planning
c. tactical planning d. none of these
25. Management functions include except ________________________
a. planning b. directing
c. organizing d. all of these
26. Marketing mix includes the following except ____________________________
a. price b. promotion
c. place d. Purchase
27. New product adoption process includes the following except _____________________
a. awareness b. interest
c. evaluation d. competition
28. Consumer decision making process begins with__________
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a. information search and evaluation b. problem recognition
c. purchasing process d. all of these
29. Development stage, introductory stage and declining stage are the stages of ______________
a. new product adoption c. new technology adoption
c. product life cycle d. all of the these
30. A person who makes money by starting or running business especially when it involves
taking financial risks is technically called ______________________
a. entrepreneur b. industrialist
c. farmer d. bureaucrat
31. ________plays a central role in management functions
a. directing b. downsizing
c. planning c. communication
32. Difference between assets and liabilities is known as _____________________
a. income statement b. owner’s equity
c. balance sheet d. cash flow statement
33. The amount by which expenditure of federal Govt. exceeds its revenue in a year is called ___
a. budget deficit b. budget surplus
c. both of the above d. none of the above
34. Goods that have been produced but remain unsold _______________
a. inventory b. damaged
c. deficit d. none of these
35. Increase in money supply causes __________________
a. inflation b. deflation
c. boom d. none of them
36. _______________ are various forms of money.
a. currency notes b. coins
c. credit cards d. all of these
37. A company uses a segmentation strategy for its sandwiches based on characteristics such as
age, gender and income. It is using which group of segmentation variables?
a. demographic b. psychographic
c. geographic d. education
38. The process of dividing a total market into market groups so that persons within each group
have relatively similar product needs is called _______________________
a. segmenting b. differentiating
c. target marketing d. concentrating
39. When marginal cost is equal to marginal revenue, the firm should ___________________
a. spend more on advertising
b. produce less to decrease total costs
c. provide discounts to encourage purchases
d. stop producing additional units to maximize profits
40. Price is a key element in the marketing mix because it relates directly to
a. the size of the sales force b. quality controls
c. the generation of total revenue d. brand image
41. The oldest form of exchange ‘trading of products’ is known as ________________________
a. credit b. purchasing
c. barter d. pricing
42. _________________is a modern view of marketing based on the proposition of customer
orientation and coordination of all customer related activities and profit direction.
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a. marketing concept b. selling concept
c. product concept d. production concept
43. Currently, the dominant sector of Pakistan’s economy in terms of contribution to GDP is ___
a. agriculture b. services
c. manufacturing d. industrial
44. WTO stands for___________________
a. World Technology Organization b. World Time Organization
c. World Trade Organization d. World Tourism Organization
45. Training instruction for a small group, which employs such techniques as role-playing or
simulation etc. and encounters give and take sessions and problem-solving techniques is called
___________________________
a. Career counseling
b. Workshop
c. Development Plan
d. On the job training
46. Barriers to career advancement include _______________________
a. Lack of time
b. Rigid job specifications
c. Short-term focus
d. All of the given options
47. The basic skills possessed by the individual that are required to give certain performance are
termed as _____________________________
a. Ability
b. Motivation
c. Experience
d. Performance
48. Using the __________ approach, managers evaluate organizational effectiveness.
a. External resource
b. Internal systems
c. Technical
d. Systems
49. A career stage in which one begins to search for work and finds a first job is:
a. Exploration period
b. Establishment period
c. Middle stage
d. None of the given options
50. Without proper feedback about an employee’s effort and its effect on performance, we run the
risk of decreasing his/ her _________.
a. Salary
b. Experience
c. Motivation
d. Performance appraisal
51. The _____ problem occurs when supervisors tend to rate all their subordinates consistently
high.
a. Central tendency
b. Leniency
c. Strictness
d. Halo effect
52. Currently Organizations are providing benefits to their employees;
a. To attract new blood in the organization
b. To create stronger customer relationship
c. To enhance the market share
d. All of the above
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53. Following are all examples of direct compensation EXCEPT;
a. Pension
b. Salary
c. Bonus
d. Income
54. To be effective, leaders must provide a _________________that is a general statement of the
organization’s intended direction that evokes positive emotional feelings in organization
members.
a. Vision
b. Mission
c. Goal
d. Declaration
55. Goal setting is ______________________________________
a. Top down process
b. Bottom up process
c. A process of top down support and bottom up development
d. A function of senior management
56. When the firm changes the way it operates, the process is known as
a. Downsizing
b. Brain drain
c. Restructuring
d. Outsourcing
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72. In general, according to Sales Tax Act 1990, tax period is a period of
a. one month
b. six months
c. nine months
d. one year
73. The due date to furnish a return at the end of the tax period is the _____ day of the following
month.
a. 7th
b. 10th
c. 15th
d. 18th
74. General Sales Tax (GST) is charged on
a. Selling Price
b. Retail Price
c. Manufacturing Cost
d. None of these
75. Selling Price is equal to
76. According to Income Tax Ordinance 2001, the Normal tax year is a period of twelve months
from _____ to _____.
a. 1 January, 31 December
b. 1 April, 30 March
c. 1 July, 30 June
d. 1 September, 31 August
77. The income of a resident person is computed by taking into account amounts that
are:I. Pakistan-source income and II. Foreign-source income
a. I only
b. II only
c. I + II
d. I − II
78. The income of a non-resident person is computed by taking into account amounts that are:
I. Pakistan-source income and II. Foreign-source income
a. I only
b. II only
c. I + II
d. I − II
79. Retailer means a person supplying goods to __________ for the purpose of consumption.
a. departmental stores
b. general public
c. wholesaler
d. shops
80. Which from the following taxes is not included in the Retail Price?
a. Sales tax
b. Excise duty
c. Utilities
d. Capital value tax
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81. Value of supply is equal to
a. Taxable Supply
b. Taxable supply + All Taxes
c. Taxable Supply + All taxes + Duty Paid
d. Taxable Supply + All taxes − Duty Paid
82. For the purposes of the imposition of tax and the computation of total income, all income shall
be classified under the following heads except
a. donation
b. salary
c. income from property
d. income from business
83. _________means any amount received or receivable by the owner of land or a building as
consideration for the use or occupation of, or the right to use or occupy, the land or building,
and includes any forfeited deposit paid under a contract for the sale of land or a building.
a. Income
b. rent
c. deposit
d. advance
84. Any income from the hire or lease of tangible movable property will be added to the head
85. A person accounting for income chargeable to tax under the head "Income from Business" on
an accrual basis shall derive income when it is due to the person and shall incur expenditure
when it is payable by the person is called ________
86. _________ means labor costs directly related to the manufacture or production of stock-in
trade
a. Labor cost
b. cost of labor
c. direct labor cost
d. indirect labor cost
87. For the purpose of recovering any tax due by a taxpayer, the __________may serve upon the
taxpayer a notice in the prescribed form requiring him to pay the said amount within such time
as may be specified in the notice.
a. 1st September
b. 1st January
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c. 1st April
d. 1st July
a. Excise tax
b. Sales Tax
c. Import Duty
d. Motors token tax
a. Landlords
b. Municipal corporation
c. Joint stock companies
d. Importers
a. Consumption
b. Investment
c. Transfer payments
d. Saving
a. Foreign loans
b. Taxes
c. Printing of new money
d. Sale of government property
a. National Finance
b. Public finance
c. Private finance
d. Both a and b
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a. National Assembly
b. President of Pakistan
c. Ministry of Finance
d. State Bank of Pakistan
a. Direct taxes
b. Indirect taxes
c. Progressive taxes
d. Proportional tax
a) Weekly
b) Monthly
c) Annually
d) Quarterly
101. XYZ Ltd. has a Debt Equity Ratio of 1.5 as compared to 1.3 Industry average. It means
that the firm has:
(a) Higher Liquidity
(b)Higher Financial Risk
(c)Higher Profitability
(d)Higher Capital Employed.
102. Ratio Analysis can be used to study liquidity, turnover, profitability, etc. of a firm. What
does Debt-Equity Ratio help to study?
(a)Solvency
(b)Liquidity
(c)Profitability
(d) Turnover
104. A firm has Capital of Rs. 10,00,000; Sales of Rs. 5,00,000; Gross Profit of Rs. 2,00,000
and Expenses of Rs. 1,00,000. What is the Net Profit Ratio?
(a)20%
(b) 50%
(c)10%
(d)40%
105. XYZ Ltd. has earned 8% Return on Total Assests of Rs. 50,00,000 and has a Net Profit
Ratio of 5%. Find out the Sales of the firm.
(a) Rs. 4,00,000,
(b)Rs. 2,50,000
(c)Rs. 80,00,000
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(d)Rs. 83,33,333.
110. Which of the following may not be apart of projected Financial Statements?
(a) Projected Income Statement
(b) Projected Trial Balance
(c) Projected Cash Flow Statement
(d) Projected Balance Sheet.
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115. Which of the following is not used in Capital Budgeting?
(a) Time Value of Money
(b) Sensitivity Analysis
(c) Net Assets Method
(d) Cash Flows.
116. Capital Budgeting Decisions are:
(a) Reversible
(b) Irreversible
(c) Unimportant
(d)All of the above.
122. Cheques deposited in bank may not be available for immediate use due to
(a) Payment Float
(b)Receipt Float
(c) Net Float,
(d)Playing the Float.
123. Difference between between the bank balance as per Cash Book and Pass Book may be
due to:
(a) Overdraft
(b) Float
(c) Factoring
(d)None of the above.
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124. Concentration Banking helps in
(a) Reducing Idle Bank Balance
(b)Increasing Collection
(c)Increasing Creditors
(d)Reducing Bank Transactions.
127. If the required rate of return of a particular bond is less than coupon rate, it is known as
(a)Discount Bond
(b)Premium Bond
(c)Par Bond
(d)Junk Bond.
132. If Coupon rate is less than Required Rate of Return; as the maturity approaches the discount
on bond
(a)Increases
(b)Decreases
(c)Remains Constant
(d) None of the above.
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133. An investor buys a bond today and sells after 3 months the rate of return realised is known
as
(a)Yield to Maturity
(b)Current yield
(c)Holding Period Return
(d) Required Rate of Return.
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a. Indirect b. Direct c. Selling d. Operating
expense expense expense expense
163. All those accounts which keeps the records of expenses, income, profit & loss are called
a. Personal A/c b. Real A/c c. Nominal A/c d. None of them
166. An entry in which more than one account is debited and more than one account is credited
is called
a. Single entry b. Double entry c. Compound d. Simple entry
entry
168. The act of singing at the back of the cheque in order to transfer it to somebody else is called
a. Endorsement b. Drafting c. Closing d. None of these
170. Cheque deposited into bank but not collected are called
a. Unpresented b. Uncredited c. Dishonour d. None of these
cheque cheque cheque
171. When a person sells his bill of exchange to bank before maturity it is called
a. Renewal b. Retirement c. Endorsement d. Discounting
177. Which bank focus on promoting economic growth rather than earning profit?
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a. Demand b. Promise c. Maturity d. None of these
179. Which of the followings called Banker’s Cheque?
a. Pay Order b. Demand Draft c. Treasury Bills d. Bill of Exchange
180. When a customer “Pledges” his goods or documents with bank the relationship is known
as?
a. Mortgagor b. Bailor c. Pawner d. Lessor
Mortgagee Bailee Pawnee Lessee
a. increase the price b. Allocate savings c. control inflation d. Lower the yield on
of common stocks efficiently bonds
189. Financial markets (year or less) that deals with short term securities called
190. Agency problems are least likely to arise in which organizational form?
191. _____ measures the firm’s ability to meet its short term obligations
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a. Liquidity Ratio b. Profitability Ratio c. Leverage Ratio d. Current Ratio
a. Net profit Margin b. Profit after taxes c. Operating profit d. None of these
margin
195. _____ is the total of direct materials cost, direct labour cost and chargeable expenses
196. Which of the following will NOT equate the future value of cash inflows to the present
value of cash outflows?
197. 84. When FOH is under applied and charged to Net Profit, the treatment would be:
a. Under applied b. Under applied c. Under applied d. None of these
Add net profit Less net profit Less operating
expense
201. The cost expended in the past that cannot be retrieved on product or service
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a. Product Cost b. Relevant Cost c. Irrelevant d. Sunk Cost
Cost
203. A general rise in the prices of goods and services over time?
a. Inflation b. Deflation c. Reinflation d. Stagflation
205. Which of the following business type, has to pay double taxes to the government?
a. Sole b. Partnership c. Joint stock d. None of these
proprietorship company
206. Simply defined is satisfying human and social needs profitably
a. Marketing
b. Marketing mix
c. Market
d. Management
207. States of deprivation that can be: Physical—food, clothing, warmth, safety: Social—
belonging and affection : Individual—knowledge and self-expression are known as
a. Needs
b. Wants
c. Wish
d. Demand
208. Form that needs take as they are shaped by culture and individual personality
a. Needs
b. Wants
c. Wish
d. Demand
209. Wants backed by buying power
a. Needs
b. Wants
c. Wish
d. Demand
210. Some combination of products, services, information, or experiences offered to a market
to satisfy a need or want are called
a. Marketing value
b. Marketing image
c. Market offerings
d. Marketing myopia
211. Focusing only on existing wants and losing sight of underlying consumer needs is
a. Marketing value
b. Marketing image
c. Market offerings
d. Marketing myopia
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212. The act of obtaining a desired object from someone by offering something in return is
a. Exchange
b. Transfer
c. Sale
d. Swapping
213. The set of actual and potential buyers of a product
a. Market
b. Product
c. Targeting
d. Segments
214. The art and science of choosing target markets and building profitable relationships with
them is
a. Financial Management
b. Marketing management
c. Human Resource Management
d. Management
215. Which of the following refers to dividing the markets into segments of customers
a. Value proposition
b. Target Market
c. Market segmentation
d. Marketing Offering
216. Set of benefits or values a company promises to deliver to customers to satisfy their needs
a. Value proposition
b. Target Market
c. Market segmentation
d. Marketing Offering
217. Which of the following is the idea that consumers will favor products that are available or
highly affordable
a. Production concept
b. Marketing concept
c. Selling concept
d. Product concept
218. Which one is the idea that consumers will favor products that offer the most quality,
performance, and features. Organization should therefore devote its energy to making
continuous product improvements.
a. Production concept
b. Marketing concept
c. Selling concept
d. Product concept
219. Which concept is of the idea that a company should make good marketing decisions by
considering consumers’ wants, the company’s requirements, consumers’ long-term
interests, and society’s long-run interests
a. Production concept
b. Marketing concept
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c. Selling concept
d. Societal marketing concept
220. Comprehensive plan that communicates and delivers the intended value to chosen
customers.
a. Marketing mix
b. Market integration
c. Integrated marketing program
d. Marketing buzz
221. Which is the overall process of building and maintaining profitable customer relationships
by delivering superior customer value and satisfaction
a. Customer promise
b. Customer engagement
c. Customer friendship
d. Customer relationship management
222. Following is used to direct and coordinate the marketing effort and is created at the strategic
and tactical level
a. Planning
b. Strategic Plan
c. Marketing Plan
d. All of the above
223. The systematic design, collection, analysis, and reporting of data and findings relevant to
a specific marketing situation facing the company.
a. Marketing Research
b. Design research
c. Relevant research
d. Situation research
224. Already collected data can be used for a research which is called
a. Secondary Data
b. Primary data
c. Available data
d. Dataset
225. _______________is the perceived monetary value of the bundle of economic, functional,
and psychological benefits customers expect from a given market offering because of the
product, service, people, and image
a. Customer perceived value
b. Customer Lifetime Value
c. Customer Determining Value
d. Customer base
226. ___________ is the totality of features and characteristics of a product or service that bear
on its ability to satisfy stated or implied needs.
a. Quality
b. Standard
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c. Need
d. Performance
227. In a recent strategic move, Mobilink has acquired Warid network. This is an example of
a. Horizontal Integration b. Vertical Integration
c. Both of above d. None of the above
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a. First Line Managers
b. Middle Line Managers
c. Top Management
d. Board of Directors
238. Organizational Design is a process of making decisions relating to all of the following
EXCEPT
a. Departmentalization
b. Chain of command
c. Organizational Behavior
d. Centralization and decentralization
239. Grouping jobs on the basis of territory/region is called
a. Functional Departmentalization
b. Process Departmentalization
c. Geographical Departmentalization
d. Customer Departmentalization
240. In order to enhance creativity and innovation within organizations, organizations need to
apply all of the following EXCEPT
a. Free flow of information
b. Centralization
c. Employee Empowerment
d. Low Formalization
241. Chenab Textiles, being a leading textile manufacturer and exporter took an initiative to
take control of the distribution by making concept stores under brand name of ChenOne. This
growth strategy is called
a. Backward vertical integration
b. Forward vertical integration
c. Concentration
d. None of the above
242. Using a cost or quality advantage to exploit a particular market segment rather a larger
market is called
a. Cost Leadership Strategy
b. Differentiation Strategy
c. Focus Strategy
d. None of the above
243. Zong has relatively low market share but high market growth rate. Where would you place
Zong on BCG Matrix ?
a. Stars
b. Cash Cows
c. Question Marks
d. Dogs
244. All of the following are characteristics of Change-Capable Organizations, EXCEPT
a. support to day-to-day improvements and changes.
b. Integrating Technology
c. Tall organizational structure
d. Diverse teams.
245. Interloop is planning to raise its production capacity from 10,000 units a month to 100,000
a month in a bid to reduce its per unit production cost. What exactly are they aiming for ?
a. Economies of Scope b. Market Penetration
c. Economies of scale d. None of the above
246. Which of the following has more long term orientation in relation to others?
a. Mission b. Work Practice
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c. Policy d. Strategy
247. Following are the benefits of mission statements, EXCEPT
a. To help organizations create unanimity of purpose
b. To help in resource allocation.
c. To provide competitive advantage to competitor organizations.
d. To serve as a focal point for the work structure
248. The following paradigm of Management particularly emphasizes the importance of finding
‘one best way’ to do every job.
a. Strategic Management b. Scientific Management
c. Marketing Management d. Organizational Behavior
249. Authority within organizations is
a. The concept that a person should have one boss and should report only to that person.
b. The rights inherent in a managerial position to tell people what to do and to expect them
to do it.
c. The obligation or expectation to perform from the workforce.
d. All of the above
250. _______________ means that decision making authority is being pushed down to the
managers who are closest to the action
a. Centralization b. Decentralization
c. Employee Empowerment d. All of the above
251. Organic Organizational Structures are best suited for
a. Stable and Simple environments b. Dynamic and Complex environments
c. Centralized organizations d.None of the above
252. Following is NOT a Corporate level Strategy
a. Cost Leadership b. Vertical integration
c. Horizontal integration d. Diversification
253. Organizations with high market share and low market growth rate are placed in _________
Quarter of BCG Matrix.
a. Cash Cows b. Question Marks
c. Stars d. Dogs
254. Attempting to create a unique and distinctive product or service for which customers will
pay a premium price is known as
a. Differentiation Strategy b. Focus Strategy
c. Retrenchment Strategy d. None of the above
255. Following types of organizations are characterized by free flow of communication
a. Tall Organizations b. Lean organizations
c. Mechanistic Organizations d. Strong Departmentalization
256. A firm's mission
a. is a statement of a firm's business in which it intends to compete and the customers which
it intends to serve.
b. is an internally-focused affirmation of the organization's financial, social, and ethical goals.
c. is mainly intended to emotionally inspire employees and other stakeholders.
d. is developed by a firm before the firm develops its vision.
257. The general environment of the organizations typically DO NOT include
a. Demographic factors. b. Sociocultural factors.
c. Substitute products or services. d. Technological factors.
258. To be a core competency, a capability must satisfy all of the following criteria EXCEPT:
a. having number of substitutes. b. be hard for competing firms to duplicate.
c. be technologically innovative. d. be valuable to customers.
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259. The __________ environment is composed of elements in the broader society that can
influence an industry and the firms within it.
a. Competitor b. General
c. Sociocultural d. Industry
260. Tangible resources include:
a. assets that are people dependent such as know-how.
b.assets that can be seen and quantified.
c. organizational culture.
d.a firm's reputation
261. Most crucial and first step in marketing process is
a. Designing a marketing strategy
b. Create customer delight
c. Understanding customer needs and wants
d. Capturing value from customers
262. Mr. Junaidis opening its retail kurta outlets across different regions around the world
According to Ansoff’s Product-Market Expansion Grid what kind of strategy is this
a. Product development strategy
b. Diversification Strategy
c. Market Development strategy
d. None of the above
263. ABC Inc. is planning to launch a new war-strategy-based computer game for the male
teenagers. What kind of segmentation is this?
a. Demographic segmentation
b. Socio-cultural segmentation
c. Lifestyle segmentation
d. Geodemographic segmentation
264. To create profits, company must
a. Create loyal customers
b. Increase market share of market
c. Capture lifetime vale of customer
d. All of above
265. Following are examples of internal consumer influences, EXCEPT
a. Learning
b. Demographic; Income and Social class
c. Perception and memory
d. Motivation
266. Of the four Ps of the marketing mix, “place” includes ________.
a. Value chain b. Public relations
c. Distribution centers d. Financial resources
267. Tanya and her marketing team at a fast food restaurant are breaking their company's target
audience into groups that have shared needs that are different from the needs shared by other
groups. They are engaged in ________.
a. Market targeting b. Product Positioning
c. Market segmentation d. Product Placement
268. -------------- refers to the development of a distinct image for the product in the mind of the
consumer.
a. Targeting b.Segmenting
c. Placement d.Positioning
269. Which of the following is an example of a non-adjusting event?
a. Sale of inventory for less than its carrying value shortly after the reporting period
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b. Amounts received in respect of an insurance claim being negotiated at the period end
c. Destruction of a machine by fire after the reporting period
d. Bankruptcy of a major customer with a balance owing at the period end
270. When a lease transfers substantially all the risks and rewards of ownership to lessee, this
is called…
a. A finance lease
b. An operating lease
c. A buy-to-let agreement
d. A rental agreement
274. When the outcome of the transaction involving the rendering of services cannot be
estimated reliably, then revenue shall:
a. Not be recognized
b. Recognized to the extent of expenses recognised are recoverable
c. Be deferred
d. Recognized fully irrespective of the outcome
e. None of the above
278. What is the term used to describe the time between the acquisition of assets for processing
and their realization in cash or cash equivalents?
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a. Processing cycle
b. Turnover
c. Operating cycle
d. Turnaround
279. Cash payments to and on behalf of employees is an example of cash flows from
a. Operating activities
b. Financing activities
c. Investing activities
d. None of these
281. In 2002 State Bank of Pakistan issued the First License of Islamic Bank
to………………………….
a. Burj Islamic Bank
b. Meezan Bank limited
c. Bank Islami
d. Dawood Islamic Bank
282. The framework of an Islamic financial system is based on elements of Shari'ah which
…………. Riba (Usury) and Gharar (uncertainty).
a. Tolerate
b. Prohibit
c. Allocate
d. Surrender
a. Muswama
b. Salam
c. Musharakah
d. Itqad
a. Fix ratio
b. Any ratio
c. Variable ratio
d. Pre fixed
a. Mudarbah
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b. Murabah
c. Muswama
d. partnership
287. …………………could be defined as, the Exchange of a thing(subject matter) of value with
another thing of value, with mutual consent”
a. Sale
b. Purchase
c. Value
d. goods
288. For a valid sale the subject matter of sale should be in the………….at the time of Sale.
a. don’t certain
b. must be certain
c. always hidden
d. known to the seller only
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c. HRM
d. Innovation
295. Which of the following factors does not influence issue intensity?
a. Proximity to victim
b. Immediacy of consequences
c. Concentration of effect
d. The individual's locus of control
296. Which of the following is not an argument for social responsibility?
a. Ethical obligation
b. Lack of accountability.
c. Balance of responsibility and power
d. Possession of resources
297. Arranging and structuring work to accomplish an organization’s goals?
a. Planning
b. Organizing
c. Leading
d. Controlling
298. ___________is a process that involves defining the organization's objectives or goals,
establishing strategy, and developing a hierarchy of plans.
a. Managing
b. MBO
c. Informal planning
d. Planning
299. Plans that specify details on how overall objectives are to be achieved are
a. Standing
b. Strategic
c. Directional
d. Operational
300. Flexible plans that set out general guidelines are:
a. Directional
b. Strategic
c. Specific
d. Operational
301. An approach to setting objectives from top managers downward through the organization
is:
a. Stated objective
b. Real objective
c. MBO
d. Traditional goal setting
302. The process of monitoring, comparing, and correcting is called?
a. Controlling
b. Coordinating
c. Leading
d. Organizing
303. Assuring the right peoples are on the job & motivated
a. Planning
b. Leading
c. Organizing
d. Controlling
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304. Thin out pool of applicants to find the best choice is called _________________
a. Recruiting
b. Training & development
c. Selection
d. Motivation
305. Teach the rules, regulations, goals, and culture of the company
a. Employee development
b. Employee Training
c. Career development
d. Orientation
306. Activities in HRM concerned with helping employees exert at high energy levels
a. Communications
b. Motivations
c. Employee maintenance
d. Compensation
307. Help employees to maximize their potential
a. Training & Development
b. Research & Development
c. Conflict Management
d. Strategic management
308. Determining what jobs need to be done and by whom
a. Structure
b. Strategy
c. Mission
d. people
309. Includes the development of replacement charts
a. Strategic planning
b. Succession planning
c. HR planning
d. none of above
310. Involves linking staffing levels to organizational goals
a. Downsizing
b. Rightsizing
c. Recruitment
d. Work Specialization
311. A selection device’s consistency of measurement is called
a. Validity
b. Reliability
c. Cut Score
d. none of above
312. Future-oriented training that focuses on employee personal growth
a. Employee training
b. Employee development
c. Job rotation
d. Change agent
313. Documents that outline how goals are to be accomplished?
a. Objectives
b. Goals
c. Plans
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d. Strategies
314. Establish the organization’s overall goals
a. Strategic Plans
b. Operational Plans
c. Directional Plans
d. Specific Plans
315. Key element of MBO?
a. Goal specificity
b. Participative decision making
c. An explicit performance/evaluation period & feedback
d. All of the above.
316. A repetitive decision that can be handled by a routine approach?
a. Programmed Decision
b. Non-programmed Decision
c. Intuitive decision
d. Rational decision
317. What managers do to develop the organization’s strategies?
a. Stress Management
b. Talent management
c. Conflict Management
d. Strategic management
318. Arranging and structuring work to accomplish an organization’s goals?
a. Planning
b. Organizing
c. Leading
d. Controlling
319. The formal arrangement of jobs within an organization?
a. Organizational Design
b. Organizational Structure
c. Formalization
d. None of above
320. The number of employees who can be effectively and efficiently supervised by a manager?
a. Span of Control
b. Unity of Command
c. Chain of Command
d. Work Specialization
321. Someone who can influence others and who has managerial authority?
a. Manager
b. Leader
c. Follower
d. Controller
322. The concept that a person should have one boss and should report only to that person.
a. Unity of Command
b. Leadership
c. Authority
d. Centralization
323. The degree to which decision making is concentrated at upper levels in the organization
a. Centralization
b. Decentralization
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c. Employee Empowerment
d. Departmentalization
324. A SWOT analysis is an example of a:
a. Position analysis
b. Strategic analysis
c. Shareholder value analysis
d. Customer profitability analysis
325. Research has following characteristic/characteristics.
a. Data are collected systematically
b. Data are interpreted systematically
c. There is a clear purpose to find things out
d. All of the above.
326. To collect and analyse data from every possible case or group member (Entire Population);
this is termed a ___________.
a. Sample
b. Cluster
c. Quote
d. Census
327. The _____________ for any probability sample is a complete list of all the cases in the
population from which your sample will be drawn.
a. Sampling Frame
b. Sample Size
c. Sample Case
d. Sample Record
328. ______________ sampling involves you selecting the sample at regular intervals from the
sampling frame.
a. Simple random
b. Systematic
c. Cluster
d. Quote
329. ____________________ sampling enables you to use your judgement to select cases that
will best enable you to answer your research question(s) and to meet your objectives.
a. Quota Sampling
b. Cluster Sampling
c. Snowball sampling
d. Purposive Sampling
330. A ______________ variable changes in response to changes in other variables.
a. Mediator
b. Moderator
c. Independent
d. Dependent
331. _____________ data refer to data whose values cannot be measured numerically but can
be either classified into sets.
a. Numerical Data
b. Categorical Data
c. Interval Data
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d. Ratio Data
332. To describe and compare the extent by which values differ from the mean, we use
__________
a. Standard Derivation
b. Mode
c. Correlation
d. Regression
333. _______________________ is supplementary material at the end of a book, article,
document or any other report, usually of explanatory, statistical or bibliographic nature.
a. Appendices
b. References
c. Discussion
d. Future Directions
334. Which one is not a Wireless communication technology?
a) WiFi c) BlueTooth.
b) WiMax d) LAN
335. Which function is not the responsibility of a good Financial Information System?
a) Budgeting b) Funds Management
c) Market Surveys d) Asset Management
336. Which of the following is NOT a cash outflow for the firm?
a. depreciation.
b. dividends.
c. interest payments.
d. taxes.
337. Which of the following are not among the daily activities of financial management?
a. sale of shares and bonds
b. credit management
c. inventory control
d. the receipt and disbursement of funds
338. Reserves & Surplus are which form of financing?
a. Security Financing
b. Internal Financing
c. Loans Financing
d. International Financing
339. The addition of all current assets investment is known as...
a. Net Working Capital
b. Gross Working capital
c. Temporary Working Capital
d. All of these
340. An asset is a-
a. Source of fund
b. Use of fund
c. Inflow of funds
d. none of the above.
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341. Uses of funds include a (an):
a. decrease in cash.
b. increase in any liability.
c. increase in fixed assets.
d. tax refund.
342. Which of the following statements is correct?
a. If the NPV of a project is greater than 0, its PI will equal 0.
b. If the IRR of a project is 0%, its NPV, using a discount rate, k, greater than 0, will be 0.
c. If the PI of a project is less than 1, its NPV should be less than 0.
d. If the IRR of a project is greater than the discount rate, k, its PI will be less than 1 and its
NPV will be greater than 0.
343. In finance, "working capital" means the same thing as
a. total assets.
b. fixed assets.
c. current assets.
d. current assets minus current liabilities.
344. ____________ is defined as the length of time required to recover the initial cash out-lay.
a. Payback-period
b. Inventory conversion period
c. Discounted payback-period
d. Budget period
345. ____________ is the length of time between the firm’s actual cash expenditure and its
own cash receipt.
a. Net operating cycle
b. Cash conversion cycle
c. Working capital cycle
d. Gross operating cycle
346. _______________ refers to the length of time allowed by a firm for its customers to
make payment for their purchases.
a. Holding period
b. Pay-back period
c. Average collection period
d. Credit period
347. Amounts due from customers when goods are sold on credit are called _____________.
a. Trade balance
b. Trade debits
c. Trade discount
d. Trade off
348. The process which is concerned with the acquisition, financing and management of assets
is called
a. Capital Budgeting
b. Financial Management
c. Working Capital
d. Capital Structure
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349. The major functions of a Financial manager are
a. Investment
b. Financing
c. Asset Management
d. All of the above
350. An individual authorized by another person, called the principal, to act in the latter’s
behalf is called
a. Management
b. Shareholder
c. Agent
d. All of above
351. The system by which the corporations are managed and controlled id called
352. Interest paid (earned) on only the original amount, or principal borrowed (lent) is called
a. Simple Interest
b. Compound Interest
c. Discount
d. None of above
353. Interest paid (earned) on any previous interest earned, as well as on the principal
borrowed (lent) is called
a. Simple Interest
b. Compound Interest
c. All of above
d. None of above
354. The ratios that Show a firm’s ability to cover its current liabilities with its current assets
are called
a. Current Ratio
b. Financial Ratio
c. Leverage Ratio
d. Solvency Ratio
355. The ratios that Show a firm’s ability to meet current liabilities with its most liquid assets
are called
a. Current Ratio
b. Acid Test Ratio
c. Leverage Ratio
d. Solvency Ratio
a. Current Ratio
b. Acid Test Ratio
c. Leverage Ratio
d. Debt to Equity Ratio
357. Shows the percentage of the firm’s assets that are supported by debt financing.
36
a. Current Ratio
b. Debt to Total Assets Ratio
c. Leverage Ratio
d. Debt to Equity Ratio
a. Cost of Capital
b. Internal Rate of Return
c. Working Capital
d. Perpetuity
a. Management
b. Agents
c. Shareholders
d. All of above
360. _____ is a system of marketing by which organizations communicate directly with target
customers to generate a response and/or a transaction.
a. Advertising
b. Sales promotion
c. Direct marketing
d. Publicity
365. The process of transferring business transactions from journal to ledger is called
a. Posting
b. Journalizing
c. Classifying
d. Entry
366. Income received in advance but not earned is call
a. Unearned b. Outstanding c. Accrued d. Prepaid
income expenses income expenses
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MARKETING SPECIALIZATION
367. The major difference between a low-cost leader strategy and a focused low-cost strategy
is
a. Whether the product is strongly differentiated or weakly differentiated from rivals
b. The degree of bargaining power that buyers have
c. The size of the buyer group that a company is trying to appeal to
d. No major difference between them
368. The marketing emphasis of a company pursuing a low-cost leadership strategy usually is
to
a. Beat rival brands on price with comparable features
b. publicize differentiating features and charge a premium price
c. Out-advertise rivals and make frequent use of discount coupons
d. Beat competition on product quality
369. Advertising is a major promotion mix ingredient that is a...?
a. Paid form of personal communication.
b. Paid form of non personal communication.
c. Non paid form of personal communication.
d. Non paid form of non personal communication.
370. A Bank airs a series of radio ads that claim "We are the listening bank." This campaign
would be best described as __________ advertising.
a. Pioneer
b. Target
c. Product
d. Institutional
371. Advertising that promotes organizational images, ideas, and political issues is __________
advertising.
a. defensive
b. Competitive
c. comparative
d. Institutional
372. Soft drink companies advertise that their products beat the competition in national "taste
tests," and they refer to the rival brands by name. This type of advertising is best described
as…?
a. Pioneer.
b. Competitive.
c. comparative.
d. Selective.
373. The initial stage in the development of an advertising campaign is…?
a. Creating the message.
b. Setting the budget.
c. Identifying and analyzing the advertising target audience.
d. Creating the advertising platform.
374. The target audience for an advertising campaign is the ….?
a. Information base on which to develop the campaign.
b. Location and geographic distribution of persons.
c. Group of people toward whom the advertisements are directed.
d. Overall goal of the advertising campaign.
375. Purposes of advertising agencies include:
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a. Advise & counsel on marketing strategy
b. Advise & counsel on advertising and media strategy
c. Help & counsel on sales promotion & other communication tasks
d. All of the given options
376. _______ is the process and activities people engage in- when searching for, purchasing,
using, evaluating and disposing of products and services so as to satisfy their needs and
desires.
a. Consumer Behavior
b. Decision Making
c. Advertising
d. Feedback
377. A name, term, sign, design or a unifying combination of them, intended to identify and
distinguish the product or service from competing products or services is called
_________.
a. Personal Name
b. Trade Name
c. Brand
d. Trademark
378. ________ is the art and science of fitting the products or services to one or more segments
of the broad market in such a way as to set it meaningfully apart from competition.
a. Positioning
b. Branding
c. Marketing
d. Segmentation
379. Price, product, place and promotion together form the:
a. Value
b. promotional mix
c. marketing mix
d. integrated marketing communication.
a. Advertising
b. Personal selling
c. The promotional mix
d. Publicity
382. _____ advertising is done by local merchants to encourage consumers to shop at a specific
store, use a local service, or patronize a particular establishment.
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a. Trade
b. Professional
c. Direct response
d. Retail
383. _____ advertising is targeted at individuals who influence the purchase of goods and
services used to make other products.
a. Professional
b. Primary demand
c. Retail
d. Business-to-Business
384. _____ includes those marketing activities that provide extra value or incentives for
purchasing a product such as coupons and premiums.
a. Advertising
b. Public relations
c. Sales promotion
d. Brand equity
a. Advertising
b. B. Sales promotion
c. Direct marketing
d. Personal selling
387. Dividing the market on the basis of personality and/or lifestyles is referred to as _____.
a. geographic segmentation
b. demographic segmentation
c. psychographic segmentation
d. socio economic segmentation
388. _____ involves ignoring segment differences and offering just one product or service for
the entire market.
a. Marketing mix
b. Positioning
c. Concentrated marketing
d. Undifferentiated marketing
389. _____ involves developing separate marketing strategies for a number of segments.
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a. Differentiated marketing
b. Undifferentiated marketing
c. Concentrated marketing
d. Behavioristic segmentation
392. _____ is a bundle of benefits or values that satisfies the needs of consumers.
a. Esteem.
b. Self-actualisation
c. Perception
d. None of these
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a. Conative.
b.Cognitive.
c. Affective.
d.Perception
a. Conative.
b.Affective.
c. Cognitive.
d.Perception.
398. …………….are society's relatively permanent and ordered divisions whose members
share similar values, interests, and behaviors.
a. Subcultures
b.Social classes
c. Perceptions
d.Purchase decisions
399. Family is one of the …………. factors that influence consumer behavior.
a. social
b.personal
c. psychological
d.cultural
400. _______ includes all the activities involved in selling goods or services to the final
consumers for personal, non business use.
a) merchandising c) procurement c) retailing d) all of these
401. Purpose of retail management is to_________.
a) save customer’s time b) retain customer c) satisfy customer d) both a & b
402. Retailers often act as the contact between manufacturers, wholesale and _______
a) traders b) intermediaries c) customers d) distributor
403. A ______store is a set up which offers wide range of products to end users under one roof.
a) discount b) speciality c) department d) both a & b
404. A store format which generally sells food products and household items, properly placed
and arranged in specific departments_______.
a) convenience store b) grocery store c) supermarket d) malls
405. ______ pricing fix occurs when a group of competing retailers establishes a fixed price at
which to sell certain brands of products.
a) dyadic b) vertical c) horizontal d) monopolistic
406. ______price fix occurs when a retailer collaborates with the manufacturer or wholesaler to
resell an item at an agreed-on price.
a) dyadic b) vertical c) horizontal d) monopolistic
407. _______warranties is either written or verbalized agreements about the performance of a
product and can cover all attributes of the merchandise or only one attribute.
a) explicit b) implicit c) expressed d) implied
408. ______________ refers to the management of merchandise categories, or lines, rather than
individual products, as strategic business unit.
a) Category Management, b) Merchandise Management, c) retail management, d) both b
&c
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409. The number of merchandise brands that are found in a merchandise line is known as
a)breadth, b) depth, c) assortment, d) both a & c
410. Which one of the following are merchandise constraining factors?
a) Currency Constraints, b) Space Constraints, c) Turnover Constrains, d) all of these
411. Consignment is when the vendor retains the ownership of the goods and usually establishes
the selling price; it is paid only when the goods are ______by the retailer.
a) bought, b) sold, c) owned, d) not sold
412. Maintain high merchandise turnover while maintaining _______ margin goals is an
important conflict in stock planning.
a) high, b) low, c) equal, d) adequate
413. Reliability of delivery, trade terms and projected markup are the criteria for selection of
_________.
a) retailing, b) merchandising, c) wholesaling, d) none of these
414. A ___________ is offered as an inducement to purchase large quantities of merchandise in
quantity discount.
a) price reduction, b) product reduction, c) price control, d) increased price
415. A discount provided to retailers if they purchase and take delivery of merchandise in the
off season.
a) trade discount, b) cash discount, c) seasonal discount, d) promotional discount.
416. _____________ occurs when an employee of one of the retailer’s vendors steals
merchandise as it is delivered to the retailer.
a) Vendor collusion, b) shrinkage, c) employee theft, d) customer theft
417. In the supplies decision stage a company should not in-source when
a) Uncertainty of economy is low b) uncertainty of economy is high c) Low competition in
market place d) Low transparency of supplier
418. Things to consider in the supplier evaluation in supply management are following
except______
a) financial status b) procurement methods c) track record d)cost of production
419. In the total cost of ownership analysis which one is not a Direct cost.
a) material b) labour c) machinery d) freight
420. In the total cost of ownership analysis which one is not a Indirect cost.
a) administration b) depreciation c) variable overhead d) lease
421. E-mart is an example of
a) Corporate retail chains, b) Franchises, c) Independents, single store, d) company
sponsored
422. Integration of Technology involves
a) Supply Chain Management, b) Customer Management, c) Customer Satisfaction, d) all
of these
FINANCE SPECIALIZATION
423. A firm's operating cycle is equal to its inventory turnover in days (ITD)
a. plus its receivable turnover in days (RTD).
b. minus its RTD.
c. plus its RTD minus its payable turnover in days (PTD).
d. minus its RTD minus its PTD
43
424. XYZ Company had sales last year of Rs. 265 million, including cash sales of Rs. 25
million. If its average collection period was 36 days, its ending accounts receivable balance is
closest to . (Assume a 365-day year.)
a. Rs. 26.1 million
b. Rs. 23.7 million
c. Rs. 7.4 million
d. Rs. 18.7 million
425. In last year the current ratio was 3:1 and quick ratio was 2:1.Presently current ratio is 3:1
but quick ratio is 1:1.This indicates comparably
a. high liquidity
b. higher stock
c. lower stock
d. low liquidity
426. You are considering two mutually exclusive investment proposals, project A and project
B. B's expected value of net present value is $1,000 less than that for A and A has less
dispersion. On the basis of risk and return, you would say that
a. Project A dominates project B.
b. Project B dominates project A.
c. Project A is more risky and should offer greater expected value.
d. Each project is high on one variable, so the two are basically equal.
427. What are the different options other than cash used for distributing profits to
shareholders?
a. Bonus shares
b. Stock split
c. Stock purchase
d. All of these
428. In Walter model formula D stands for
a. Dividend per share
b. Direct Dividend
c. Dividend Earning
d. None of these
429. When total current assets exceeds total current liabilities it refers to.
a. Gross Working Capital
b. Temporary Working Capital
c. Both a and b
d. Net Working Capital
430. If the weighting of equity in total capital is 1/3, that of debt is 2/3, the return on equity is
15% that of debt is 10% and the corporate tax rate is 32%, what is the Weighted Average
Cost of Capital (WACC)?
a. 10.533%
b. 7.533%
c. 9.533%
d. 11.350%
431. Which of the following would not be financed from working capital?
a. Cash float.
44
b. Accounts receivable.
c. Credit sales.
d. A new personal computer for the office.
432. What is the difference between the current ratio and the quick ratio?
a. The current ratio includes inventories and the quick ratio does not.
b. The current ratio does not include inventories and the quick ratio does.
c. The current ratio includes physical capital and the quick ratio does not.
d. The current ratio does not include physical capital and the quick ratio does.
433. Which of the following is not the responsibility of financial management?
a. allocation of funds to current and capital assets
b. obtaining the best mix of financing alternatives
c. preparation of the firm's accounting statements
d. development of an appropriate dividend policy
434. Banks generally prefer Debt Equity Ratio at :
a. 1:1
b. 1:3
c. 2:1
d. 3:1
435. If a company issues bonus shares the debt equity ratio will
a. Remain unaffected
b. Will be affected
c. Will improve
d. none of the above.
436. In the balance sheet amount of total assets is Rs.10 lac, current liabilities Rs.5 lac capital
& reserves are Rs.2 lac .What is the debt equity ratio?
a. 1;1
b. 5:1
c. 2:1
d. none of the above.
437. Which of the following would be included in a cash estimation/ budget?
a. depreciation charges.
b. dividends.
c. goodwill.
d. patent amortization.
438. Which of the following would be considered an application of funds?
a. a decrease in accounts receivable.
b. a decrease in cash.
c. an increase in account payable.
d. an increase in cash.
439. All of the following influence capital budgeting cash flows EXCEPT:
a. accelerated depreciation.
b. salvage value.
45
c. tax rate changes.
d. method of project financing used.
440. The estimated benefits from a project are expressed as cash flows instead of income
flows because:
a. it is simpler to calculate cash flows than income flows.
b. it is cash, not accounting income, that is central to the firm's capital budgeting decision.
c. this is required by the Internal Revenue Service.
d. this is required by the Securities and Exchange Commission.
441. A profitability index of .85 for a project means that:
a. the present value of benefits is 85% greater than the project's costs.
b. the project's NPV is greater than zero.
c. the project returns 85 cents in present value for each current dollar invested.
d. the payback period is less than one year.
442. A project's profitability index is equal to the ratio of the of a project's future cash flows to
the project's .
a. present value; initial cash outlay
b. net present value; initial cash outlay
c. present value; depreciable basis
d. net present value; depreciable basis
443. The discount rate at which two projects have identical is referred to as Fisher's rate of
intersection.
a. present values
b. net present values
c. IRRs
d. profitability indexes
444. To increase a given present value, the discount rate should be adjusted
a. upward.
b. downward.
c. No change.
d. constant
445. Which of the following would be consistent with a more aggressive approach to
financing working capital?
a. Financing short-term needs with short-term funds.
b. Financing permanent inventory buildup with long-term debt.
c. Financing seasonal needs with short-term funds.
d. Financing some long-term needs with short-term funds.
446. Which asset-liability combination would most likely result in the firm's having the
greatest risk of technical insolvency?
a) Increasing current assets while lowering current liabilities.
b) Increasing current assets while incurring more current liabilities.
c) Reducing current assets, increasing current liabilities, and reducing long-term debt.
d) Replacing short-term debt with equity.
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447. _______________ refers to the amount invested in various components of current assets.
a. Temporary working capital
b. Net working capital
c. Gross working capital
d. Permanent working capital
448. _______________ refers to a firm holding some cash to meet its routine expenses that
are incurred in the ordinary course of business.
a. Speculative motive
b. Transaction motive
c. Precautionary motive
d. Compensating motive
449. Capital Management, Cash management, Credit management are the functions of
451. The value at some future time of a present amount of money, or a series of payments,
evaluated at a given interest rate is called
452. The current value of a future amount of money, or a series of payments, evaluated at a
given interest rate is called
453. Mr. Ali wants to know how large his deposit of Rs. 10,000 today will become at a
compound annual interest rate of 10% for 5 years.
454. A series of equal payments or receipts occurring over a specified number of equidistant
periods is called
457. The actual rate of interest earned (paid) after adjusting the nominal rate for factors such
as the number of compounding periods per year is called
a. Simple Interest b. Compound Interest c. Effective Annual Interest Rate d. All of above
458. A table showing the repayment schedule of interest and principal necessary to pay off a
loan by maturity is called
459. A Person is borrowing Rs. 10,000 at a compound annual interest rate of 12%. What will
be the annual installment if annual payments are made for 5 years?
47
a. Rs. 2,774 b. Rs. 2,994 c. Rs. 3,014 d. Rs. 2,611
461. A ______________ is an index that relates two accounting numbers and is obtained by
dividing one number by the other.
a. Current Ratio
b. Debtors Turnover Ratio
c. Creditors Turnover Ratio
d. Inventory Turnover Ratio
463. _____________Indicates the firm’s profitability after taking account of all expenses and
income taxes.
a. Current Ratio
b. Net Profit Ratio
c. Leverage Ratio
d. Debt to Equity Ratio
464. The discount rate that equates the present value of the future net cash flows from an
investment project with the project initial cash outflow is called
465. The present value of an investment project net cash flows minus project initial cash
outflow is called
466. The ratio of present value of project net future cash flows to the project initial cash
outflows is called
467. If net present value of a project investment is zero or more, then project will
a. Accepted
b. Rejected
c. None of Above
d. Both A&B
468. In Murbaha agreement, the financer may appoint agent which ………………
a. Fresh assets
b. used asset
c. old assets
d. future made goods
470. ………………is a sale contract where the full payment of the goods are paid in advance
a. Murabaha
b. Salam
c. Muswama
d. Normal sale
471. Contract of ………… doesn’t valid for the products that are must be delivered at the spot.
a. Salam
b. Muswama
c. Murabah
d. Ijarah
472. ………… is a simple sale that we are used in our daily routine life.
a. Ijarah
b. Istisna
c. parallel salam
d. Muswama
a. Allowed
b. not allowed
c. allowed with some conditions
d. not strictly allowed
474. A fund where the subscription amount is invested in different types of investments, like
equities, leasing, commodities, etc. is known as ……………………
a. Ijarah Fund
b. Mixed fund
c. equity fund
d. murbaha fund
475. Murabaha is a kind of sale where the certain profit added to the actual cost of the goods
which is ………………………………
ACCOUNTING SPECIALIZATION
476. ___________ means the generally accepted accounting principle under which the valuation
of stock-in-trade is based on a weighted average cost of units on hand
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a. Central average method
b. Weighted average
c. Stock in trade method
d. Average cost method
477. __________means the cost of materials that become an integral part of the stock-in trade
manufactured or produced, or which are consumed in the manufacturing or production
process
a. fixed cost
b. product cost
c. direct material cost
d. stock-in trade
478. The assets which come into existence upon the happening of a certain event are
called__________?
a. Contingent assets
b. Fixed assets
c. Fictitious assets
d. Quick assets
479. Payment for freight on raw material purchased is called
486. The amount setting aside out of profit for a possible loss or liabilities is called
a. Allowance b. Provision c. Reserves d. All of these
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487. Cost accounting department prepares ___________ that helps them in preparing final
accounts.
a. Cost sheets b. Cost of goods sold c. Cost of production d. Material
statement Report requisition form
488. Weighted average cost per unit is calculated by which of the following formula?
489. ________method assumes that the goods received most recently in the stores or produced
recently are the first ones to be delivered to their questioning department?
a. LIFO b. FIFO c. Weighted d. Most recent
average method price method
490. Accounting Ratios are important tools used by
a. Managers,
b. Researchers
c. Investors
d. All of the above
491. Which of the following is an example of a non-adjusting event?
a. Sale of inventory for less than its carrying value shortly after the reporting period
b. Amounts received in respect of an insurance claim being negotiated at the period end
c. Destruction of a machine by fire after the reporting period
d. Bankruptcy of a major customer with a balance owing at the period end
492. A construction contract in which the contractor is reimbursed for pre-defined costs, plus a
percentage of these or a fixed fee mark-up, is called…
a. Fixed price contract
b. Pre-defined contract
c. Cost plus contract
d. Negotiated contract
493. A contract in which the contractor agrees to a pre-determined contract price, which in some
cases is subject to cost escalation clauses is called a…
a. Fixed price contract
b. Pre-defined contract
c. Cost plus contract
d. Negotiated contract
494. Which of the following costs cannot be allocated to a construction contract cost?
a. Material used in construction
b. Selling costs
c. Rectification work
d. Design work
495. Which of the following is not a requirement in determining whether the construction of a
series of assets should be treated as separate contracts?
a. Separate proposals were submitted
b. The customer could use different contractors for each asset
c. Contracts will run concurrently or in a single sequence
d. Costs and revenues can be separated for each asset
496. Revenue and costs which are recognized according to the stage of completion of a contract
is called the:
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a. Estimated value method
b. Percentage of completion method
c. Reliable estimate method
d. Cost plus method
503. Allocation of general overheads to a construction contract should be based on ____ activity
levels.
a. Abnormal
b. Expected
c. Normal
d. Actual
504. Finance leases are accounted for in the books of lessor in a similar manner to
a. Credit transactions
b. Cash transactions
c. Sale and leaseback agreements
d. Loan forgiveness
505. In an operating lease, if a rebate is received, how should it be recorded in the financial
statements?
a. Treat as deferred income and release to P&L over the lease term
b. Recognize immediately as income
c. Deduct from the value of the lease payments
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d. Ignore
506. The payment over the lease term the lessee can or must make is called…
a. Principal
b. Interest
c. Present value payments
d. Minimum lease payments
507. When a lease transfers substantially all the risks and rewards of ownership to lessee, this
is called…
a. A finance lease
b. An operating lease
c. A buy-to-let agreement
d. A rental agreement
508. Which of the following is not a disclosure requirement for finance leases?
a. Carrying amount of asset
b. Market value of asset
c. General description of significant leasing arrangements
d. Reconciliation between total minimum lease payments and their present value
513. A Limited ships goods by sea to a foreign company, B Limited. As per the terms of the
contract, any loss or damage to the goods until it reaches the factory of B Limited shall be
borne by A Limited. In this case when does A Limited recognize revenue?
a. When the goods leave the factory of A Limited
b. When the goods reach the country in which B is located
c. When the goods are packed and ready for sale
d. When goods reach the factory of B Limited
514. When the outcome of the transaction involving the rendering of services cannot be
estimated reliably, then revenue shall:
a. Not be recognized
b. Recognized to the extent of expenses recognised are recoverable
c. Be deferred
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d. Recognized fully irrespective of the outcome
516. When the seller retains an obligation for unsatisfactory performance not covered by normal
warranty:
a. They are said to have retained insignificant risk
b. They are said to have retained significant risk and rewards of the sale
c. They are said to have transferred the risk and reward of sale to the buyer
d. They are said to have transferred performance risks to the buyer
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d. Notes to the financial statements
525. Diluted EPS shows
a. The expected EPS if all securities with an equity interest, exercise those interests
b. The expected EPS if the share price falls
c. The expected EPS if all loans are discharged
d. The expected EPS if equity options and warrants are redeemed
526. Ordinary shares outstanding during the period are
a. Based on the outstanding shares in the previous period
b. Based on the outstanding shares at the start of the period
c. Based on the outstanding shares at the end of the period
d. The weighted average number of shares outstanding during the period
527. A current asset or liability is expected to be recovered or settled within..
a. Three months
b. Six months
c. Twelve months
d. Twenty four months
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ANSWER KEY MCQS FOR MCOM EXIT EXAM
1. b
2. c
3. c
4. d
5. b
6. b
7. d
8. b
9. a
10. b
11. d
12. d
13. c
14. c
15. d
16. c
17. a
18. c
19. c
20. d
21. a
22. a
23. d
24. b
25. d
26. d
27. d
28. b
29. c
30. a
31. c
32. b
33. a
34. a
35. a
36. d
37. a
38. a
39. d
40. c
41. c
42. a
43. b
44. c
45. b
46. d
47. a
48. b
49. b
50. c
51. b
52. a
53. a
54. a
55. c
56. c
57. d
58. d
56
59. c
60. c
61. c
62. b
63. d
64. c
65. a
66. b
67. c
68. b
69. c
70. c
71. d
72. a
73. c
74. b
75. a
76. c
77. c
78. a
79. b
80. a
81. c
82. a
83. a
84. d
85. d
86. c
87. c
88. d
89. d
90. c
91. c
92. a
93. b
94. d
95. b
96. d
97. c
98. b
99. c
100. b
101. b
102. a
103. b
104. a
105. c
106. b
107. c
108. d
109. d
110. b
111. c
112. c
113. a
114. a
115. c
116. b
117. a
118. d
119. d
120. d
57
121. c
122. b
123. b
124. b
125. d
126. c
127. c
128. b
129. b
130. c
131. c
132. b
133. c
134. b
135. d
136. b
137. b
138. b
139. a
140. d
141. a
142. b
143. c
144. b
145. c
146. d
147. c
148. d
149. c
150. c
151. c
152. b
153. b
154. a
155. a
156. c
157. a
158. d
159. a
160. a
161. c
162. a
163. a
164. c
165. b
166. c
167. d
168. a
169. a
170. b
171. d
172. c
173. c
174. a
175. d
176. d
177. c
178. a
179. b
180. c
181. d
182. a
58
183. d
184. b
185. d
186. c
187. c
188. b
189. d
190. a
191. d
192. b
193. c
194. a
195. b
196. d
197. a
198. a
199. a
200. b
201. d
202. c
203. a
204. b
205. c
206. a
207. a
208. b
209. d
210. c
211. d
212. a
213. a
214. b
215. c
216. a
217. a
218. d
219. d
220. c
221. d
222. c
223. a
224. a
225. a
226. a
227. a
228. a
229. c
230. b
231. c
232. c
233. b
234. d
235. d
236. a
237. a
238. c
239. c
240. b
241. b
242. c
243. c
244. c
59
245. c
246. a
247. c
248. b
249. d
250. b
251. b
252. a
253. a
254. a
255. b
256. a
257. c
258. a
259. b
260. b
261. c
262. c
263. a
264. d
265. b
266. c
267. c
268. d
269. c
270. a
271. a
272. c
273. b
274. b
275. b
276. d
277. c
278. c
279. a
280. a
281. b
282. b
283. d
284. c
285. b
286. d
287. a
288. a
289. b
290. b
291. c
292. a
293. c
294. d
295. d
296. b
297. b
298. d
299. d
300. a
301. d
302. a
303. b
304. c
305. d
306. b
60
307. a
308. a
309. b
310. b
311. b
312. b
313. c
314. a
315. d
316. a
317. d
318. b
319. b
320. a
321. b
322. a
323. a
324. a
325. d
326. d
327. a
328. b
329. d
330. d
331. b
332. a
333. a
334. d
335. c
336. a
337. a
338. b
339. b
340. b
341. c
342. c
343. c
344. a
345. a
346. d
347. b
348. b
349. d
350. c
351. b
352. a
353. b
354. a
355. b
356. d
357. b
358. b
359. c
360. c
361. c
362. d
363. d
364. a
365. a
366. c
367. c
368. a
61
369. b
370. d
371. d
372. c
373. c
374. c
375. d
376. a
377. c
378. a
379. c
380. a
381. a
382. d
383. d
384. c
385. d
386. b
387. c
388. d
389. a
390. d
391. c
392. c
393. a
394. b
395. b
396. b
397. b
398. b
399. a
400. c
401. d
402. c
403. c
404. c
405. c
406. b
407. c
408. a
409. d
410. d
411. b
412. a
413. b
414. a
415. c
416. a
417. b
418. b
419. c
420. c
421. c
422. d
423. a
424. b
425. b
426. a
427. d
428. a
429. d
430. c
62
431. d
432. a
433. c
434. c
435. d
436. d
437. b
438. d
439. d
440. b
441. c
442. a
443. b
444. b
445. d
446. c
447. c
448. b
449. a
450. b
451. a
452. b
453. a
454. c
455. a
456. b
457. c
458. c
459. a
460. d
461. b
462. d
463. b
464. a
465. c
466. d
467. a
468. b
469. a
470. a
471. a
472. d
473. b
474. b
475. b
476. d
477. c
478. a
479. b
480. a
481. b
482. b
483. a
484. a
485. b
486. b
487. b
488. b
489. a
490. d
491. c
492. c
63
493. a
494. b
495. c
496. b
497. a
498. c
499. b
500. b
501. b
502. a
503. c
504. a
505. a
506. d
507. a
508. b
509. a
510. b
511. c
512. b
513. d
514. b
515. d
516. b
517. c
518. d
519. b
520. b
521. a
522. d
523. a
524. a
525. a
526. d
527. c
528. a
529. c
530. b
531. c
532. a
533. a
64