Business Administration Paper – 2001 Solved MCQs CS Set 1

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(1) Most preferred stock pays a fixed dividend at regular intervals.

(a) True

(b) False

Answer: (a)

(2) Any increase in an asset item is a source of funds.

(a) True

(b) False

Answer: (b)

(3) Depreciation is a book-keeping entry that allocates the cost of assets against income but does not involve any movement of capital.

(a) True

(b) False

Answer: (a)

(4) The maturity of a security relates to the owner’s ability to convert it into cash on short notice:

(a) True

(b) False

Answer: (b)

(5) The credit period represents the period of time during which a cash discount can be taken on short notice.

(a) True

(b) False

Answer: (b)

(6) Which ratio is computed with the help of the following? Cost of goods sold/Inventory

(a) Receivable turnover

(b) Times interest earned

(c) Inventory Turnover

(d) None of these

Answer: (c)

(7) ________ is the right that is delegated to an individual or a department to control specific processes, practices, policies and other matters relating to activities undertaken by person in other departments.

(a) Line authority

(b) Functional Authority

(c) Line and Staff Authority

(d) None of these

Answer: (b)

(8) Decentralization is the tendency to disperse decision making in an organized structure:

(a) True

(b) False

Answer: (a)

(9) Programmes are plans which are general statements or understandings that guide or

channel thinking in decision making:

(a) True

(b) False

Answer: (a)

(10) _______ is that part of managing that involves establishing an international structure of roles for people to fill in an organization:

(a) Leading

(b) Controlling

(c) Planning

(d) None of these (Organizing)

Answer: (d)

(11) Henri Fayol applied the principle of „Division of Work‟ to all kinds of work, managerial as well as technical.

(a) True

(b) False

Answer: (a)

(12) ________ spell out specific required actions or non-actions, allowing no discretion:

(a) Procedures

(b) Budgets

(c) Rules

(d) None of these

Answer: (c)

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