Business Administration MCQ (Multiple Choice Questions)

11-Terminal cash flow is calculated as

(A) After tax salvage value from new asset – After tax salvage value of old asset (if retained)

(B) Operating cash flow from new asset – Operating cash flow from old asset which is retained

(C) Cost of new asset – Cost of old asset

(D) Cash flow with project – Cash flow without project


12-Select a proper reason for Skimming Price Policy

(A) There is greater elasticity of demand

(B) To discourage rivals to enter in market

(C) At initial stage there is less elastic demand

(D) To have stronghold on the market share


13-Marketing myopia refers to

(A) Broad perception of marketing

(B) Narrow perception of marketing

(C) Scope of marketing

(D) Functions of marketing


14-What will be the dividend per share of a company for the year 2011?

When – EPS – Rs. 3, DPS – Rs. 1.2, Target payout ratio – 0.6, Adjustment ratio – 0.7

Apply Linter Model.

(A) 1.62

(B) 1.26

(C) 1.66

(D) 2.16


15-Which of the following groups would you consider on priority, when a new product is to be introduced into the market?

(A) Competitors

(B) Consumers

(C) Dealers

(D) Employees


16-Every Day Low Pricing (EDLP) is a type of

(A) Probe pricing

(B) Trial pricing

(C) Value pricing

(D) Standard pricing


17-The standard and the actual requirements of material of a company are as under: Standard – 2400 units at the rate of Rs. 20 per unit. Actual – 2600 units at the rate of Rs. 19 per unit. The material cost variance is

(A) Rs. 1,400 (adverse)

(B) Rs. 2,400 (adverse)

(C) Rs. 1,400 (favorable)

(D) Rs. 2,600 (adverse)


18-Which of the following statements is correct for formal organization?

(A) There is no need for co-ordination

(B) There is a network of personal and social relations

(C) The main purpose is to develop relationship

(D) There is superior-subordinate relationship throughout the organization


19-Which of the following is not a type of communication?

(A) Formal communication

(B) Vertical communication

(C) Breakout communication

(D) Upward communication


20-Interviewing variables of quality of work life consists of

(A) Individual factors

(B) Job satisfaction

(C) Organizational factors

(D) Job factors



11-(A), 12-(C), 13-(B), 14-(A), 15-(A), 16-(C), 17-(A), 18-(D), 19-(C), 20-(B)