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This section includes 7 InterviewSolutions, each offering curated multiple-choice questions to sharpen your Current Affairs knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
Capital Budgeting Decisions are based on ______________. A. Incremental Profit B. Incremental Cash Flows C. Incremental Assets D. Incremental Capital |
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Answer» B. Incremental Cash Flows |
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| 2. |
The __________ is required to ensure circulation of operating cycle. A. Regular working capital B. Fixed working capital C. Reserve working capital D. Variable working capital |
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Answer» A. Regular working capital |
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| 3. |
In Profitability Index (PI) method reject the project if _________. A. PI > 1.0B. PI < 1.0 C. PI = 1.0 D. PI = 2.0 |
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Answer» Correct option is B. PI < 1.0 |
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| 4. |
In the funds flow statement, depreciation is ____________. A. Deducted from net profit B. added to net profit C. a source of working capital D. ignored |
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Answer» B. added to net profit |
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| 5. |
Which of the following does not characterize the business environment ? (A) Pure competition (B) Perfect competition (C) Monopoly (D) Monopolistic competition |
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Answer» (D) Monopolistic competition |
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| 6. |
Payment of dividend is __________. A. a source of funds B. an application of funds C. neither source nor application D. a current asset |
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Answer» B. an application of funds |
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| 7. |
Profitability Index, when applied to Divisible Projects, impliedly assumes that ____________. A. Project cannot be taken in parts B. NPV is linearly proportionate to part of the project taken up C. NPV is additive in nature D. Both (b)and (c) |
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Answer» D. Both (b)and (c) |
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| 8. |
Which of the following does not affect cash flows proposal? A. Salvage ValueB. Depreciation Amount C. Tax Rate Chang D. Method of Project Financing |
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Answer» D. Method of Project Financing |
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| 9. |
What does a monopolistic market show ? (A) Production Process (B) Distribution system (C) Nature of market (D) None of these |
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Answer» (C) Nature of market |
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| 10. |
Income tax paid is __________. A. an application of funds B. a current asset C. a current liability D. an sources of funds |
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Answer» A. an application of funds |
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| 11. |
Cash Inflows from a project includes ______________. A. Tax Shield of Depreciation B. After-tax Operating Profits C. Raising of Funds D. Both (a) and (b) |
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Answer» D. Both (a) and (b) |
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| 12. |
The funds required for running an organisation are generally called as ____________. A. Overdraft B. Cash credit C. Working capital D. Operating profit |
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Answer» C. Working capital |
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| 13. |
Which one of the following is true for monopoly?(A) Firm is price maker (B) Demand curve slopes downwards (C) Price discrimination possibility arises (D) All of the above |
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Answer» (D) All of the above |
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| 14. |
Controlling process involves the following steps define, measure, analyze, ________, control. a) Establishment. b) Motivation c) Coordination d) Improve. |
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Answer» d) Improve Controlling process involves the following steps define, measure, analyze, Improve control. |
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| 15. |
CFBT stands for __________. A. Cash Flow Between Tax B. Cash Flow Before Tax C. Cash Flow Become TaxD. Cash Flow Behind Tax |
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Answer» B. Cash Flow Before Tax |
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| 16. |
When NPV is positive ________. A. NPV = Zero B. NPV < Zero C. NPV > ZeroD. None of these |
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Answer» C. NPV > Zero |
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| 17. |
In case of divisible projects, which of the following can be used to attain maximum NPV? A. Feasibility Set Approach B. Internal Rate of Return C. Profitability Index Approach D. Mean |
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Answer» C. Profitability Index Approach |
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| 18. |
The price of a good is determined by - (A) Demand (B) Supply (C) Both demand & supply (D) Government |
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Answer» (C) Both demand & supply |
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| 19. |
State true or falseLeadership means inspiring the subordinates with a zeal to do work for the accomplishment of organizational objectives. |
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Answer» Leadership means inspiring the subordinates with a zeal to do work for the accomplishment of organizational objectives. False (Motivation). |
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| 20. |
CFAT stands for ___________. A. Cash Flow After Tax B. Cash Flow Again Tax C. Cash Flow Agree Tax D. Cash Flow Accept Tax |
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Answer» A. Cash Flow After Tax |
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| 21. |
Market price is associated with - (A) Price for very short period (B) Normal Price (C) Permanent Price (D) All of above |
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Answer» (A) Price for very short period |
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| 22. |
Organizing involves ________ among people whose efforts must be coordinated to achieve specific objectives and to implement pre-determined strategies. |
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Answer» Organizing involves Division of work among people whose efforts must be coordinated to achieve specific objectives and to implement pre-determined strategies. |
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| 23. |
NPV Stands for ___________. A. Net Profit Value B. Net Present Value C. Net Probable Value D. Net Public Value |
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Answer» B. Net Present Value |
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| 24. |
Which is a reason of change is demand ? (A) Change in Consumer’s Income (B) Change in prices of Related Goods (C) Population increase (D) All of these |
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Answer» (D) All of these |
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| 25. |
The degree of ________ varies according to the scale of operations a) Centralization b) Decentralization c) Both a & b d) None of the above |
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Answer» b) Decentralization The degree of Decentralization varies according to the scale of operations. |
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| 26. |
Price of a good is determined at a point where - (A) Demand > Supply (B) Demand < Supply (C) Demand = Supply (D) None of these |
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Answer» (C) Demand = Supply |
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| 27. |
ERI Stands for ___________. A. Expected Return on Interest B. Express Request Information C. Effective Rate of Interest D. Effective Request of Income |
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Answer» C. Effective Rate of Interest |
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| 28. |
_________study aims at providing proper rest intervals or breaks to workers to increase the effectiveness of the work 1. Time 2. Motion 3. Fatigue 4. method |
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Answer» 3. Fatigue Fatigue study aims at providing proper rest intervals or breaks to workers to increase the effectiveness of the work. |
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| 29. |
The advocate of democratic socialism was …………(a) Jawaharlal Nehru (b) P.C. Mahalanobis (c) Dr. Rajendra prasad (d) Indira Gandhi |
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Answer» (a) Jawaharlal Nehru |
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| 30. |
FV Stands for _______. A. Future Value B. Forecast Value C. Forum Value D. Fourth Value |
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Answer» A. Future Value |
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| 31. |
Management is relevant at Middle & Lower Level or Management whereas Administration is relevant at ________ level of management. a) Top-level b) Middle level c) Supervisory level d) Low level |
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Answer» a) Top-level Management is relevant at Middle & Lower Level or Management whereas Administration is relevant at Top-level level of management. |
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| 32. |
Macro Economics studies - (A) Employment opportunities in economy (B) Consumption Theory (C) Elasticity of demand in Scooter (D) Price of wheat in market |
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Answer» (A) Employment opportunities in economy |
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| 33. |
SPIC is located in …………(a) Chennai (b) Madurai (c) Tuticorin (d) Pudukkottai |
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Answer» (c) Tuticorin |
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| 34. |
PV Stands for _____________. A. Press Value B. Present Value C. Perfect Value D. PrincipalValue |
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Answer» B. Present Value |
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| 35. |
Who quotes “Management is the process by which co-operative group directs actions towards a common goal.” a) Harold Koontz. b) George R Terry c) Massie & Douglas d) Koontz O’ Donnell |
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Answer» c) Massie & Douglas Massie & Douglas “Management is the process by which co-operative group directs actions towards a common goal.” |
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| 36. |
Which one of the following is included in ‘Stock’ ? (A) Quantity of money (B) Wealth (C) Quantity of wheat stored in warehouse (D) All of these |
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Answer» (D) All of these |
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| 37. |
Funds inflow from operations is __________. A. an application of funds B. an external sources of funds C. a current liability D. an internal source of funds |
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Answer» D. an internal source of funds |
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| 38. |
Which one is included in National Income ? (A) Rent, Wage, Interest (B) Rent, Wage, Salary (C) Rent, Profit, Interest (D) Rent, Wage, Salary, Interest, Profit |
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Answer» (D) Rent, Wage, Salary, Interest, Profit |
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| 39. |
Depreciation expenses are included in - (A) GNPMP (B) NNPMP (C) NNPFC (D) None of these |
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Answer» Depreciation expenses are included in GNPMP. |
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| 40. |
Purchase of fixed assets by issue of shares is __________. A. sources of funds B. Application of funds C. an item to be ignored in fund flow statement D. an item to be added in fund flow statement |
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Answer» C. an item to be ignored in fund flow statement |
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| 41. |
increase a given present value the discount rate should be adjusted |
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Answer» Answer: downward |
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| 42. |
The following is not an objective of management .....a. Earning profits b. Growth of the organisation c. Providing employment d. Policy making |
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Answer» Correct option: c. Providing employment |
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| 43. |
Net working capital is the excess of current assets over ________. A. Current liabilities B. Long term liabilities C. Contingent liabilities D. Fixed liabilities |
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Answer» A. Current liabilities |
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| 44. |
Barrier in effective communication is - (A) Language (B) Distance (C) Individual differences (D) All of the above |
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Answer» (D) All of the above |
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| 45. |
Issue of bonus shares out of reserves ___________. A. increases working capitalB. decreases working capital C. little change in the working capital D. does not affect working capital |
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Answer» D. does not affect working capital |
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| 46. |
Depreciation is included in the case of _______. A. Payback period Method B. Net Present Value C. Discounted Cash Flow Method D. Accounting Rate of Return Method |
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Answer» D. Accounting Rate of Return Method |
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| 47. |
Controlling is necessary - (A) For small enterprise (B) For medium sized enterprise (C) For large sized enterprise (D) For all of the above |
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Answer» (D) For all of the above |
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| 48. |
While evaluating capital investment proposals, the time value of money is considered in case of _______. A. Payback period Method B. Discounted Cash Flow Method C. Internal Rate of Return Method D. Accounting Rate of Return Method |
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Answer» B. Discounted Cash Flow Method |
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| 49. |
Development of employees involves (A) Promotion (B) Transfer (C) Training (D) All of these |
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Answer» (C) Training |
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| 50. |
When total current assets exceeds total current liability it refers to… |
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Answer» Answer: Net Working Capital |
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