MCQ on Strategic Financial Management 1

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Objective Questions and Answers of MBA: MCQ on Strategic Financial Management 1

Subject: Objective Questions and Answers of MBA: MCQ on Strategic Financial Management 1

Part 1: List for questions and answers of Strategic Financial Management

 

Q1. Which of the following is not a limitation of swot (strengths, weaknesses, opportunity, threats) analysis?

a) Organizational strengths may not lead to competitive advantage

b) Swot gives a one-shot view of a moving target

c) swot’s focus on the external environment is too broad and integrative

d) Swot overemphasizes a single dimension of strategy

 

Q2. A marketing department that promises delivery quicker than the production department’s ability to produce is an example of a lack of understanding of the

a) Synergy of the business units

b) Need to maintain the reputation of the company

c) Organizational culture and leadership

d) interrelationships among functional areas and firm strategies

 

Q3. Xyz corp. Is centering on the objective of low-cost, high quality, on-time production by curtailing idle productive facilities and workers. The xyz corp. Is taking advantage of a ____________ system

a) just-in-time (jit)

b) Last in, first out (lifo)

c) First in, first out (fifo)

d) Highly mechanized

 

Q4. Which of the following lists is comprised of support activities

a) human resource management, information systems, procurement, and firm infrastructure

b) Customer service, information systems, technology development, and procurement

c) Human resource management, technology development, customer service, and procurement

d) Human resource management, customer service, marketing and sales, and operations

 

Q5. Although firm infrastructure is quite frequently viewed only as overhead expense, it can become a source of competitive advantage. Examples include all of the following except

a) Negotiating and maintaining ongoing relations with regulatory bodies

b) marketing expertise increasing a firm’s revenues and enabling it to enter new markets

c) Effective information systems contributing significantly to a firm’s overall cost leadership strategy

d) Top management providing a key role in collaborating with important customers 

 

Q6. The competencies or skills that a firm employs to transform inputs into outputs are

a) Tangible resources

b) Intangible resources

c) organizational capabilities

d) Reputational resources

 

Q7. An array of firm resources include interpersonal relations among managers in the firm, its culture, and its reputation with its customers and suppliers. Such competitive advantages are based upon

a) Physical uniqueness

b) Path dependency

c) social complexity

d) Tangible resources

 

Q8. A company’s ability to meet its short-term financial obligations is measured by which of the following categories?

a) liquidity ratios

b) Profitability ratios

c) Activity ratios

d) Leverage ratios

 

Q9. The “balanced scorecard” supplies top managers with a _____________ view of the business

a) Long-term financial

b) Detailed and complex

c) Simple and routine

d) fast but comprehensive

 

Q10. If the present value of cash inflows are greater than the present value of cash outflows, the project would be

a) accepted

b) Rejected with condition

c) Rejected with approval

d) Rejected

 

Q11. Finance functions are

a) Planning for funds

b) Raising of funds

c) Allocation of resources

d) all of the above 

 

Q12. Assertion (a) : special rules and procedures are followed in the import and export trade Reason (r) : the need for import and export trade is explained by the principles of ‘comparative cost theory

a) Both a and r are true and r is the correct explanation of a

b) both a and r are true but r is not a correct explanation of a

c) A is true but r is false

d) A is false but r is true

 

Q13. Time value of money indicates that

a) a unit of money obtained today is worth more than a unit of money obtained in future

b) A unit of money obtained today is worth less than a unit of money obtained in future

c) There is no difference in the value of money obtained today and tomorrow

d) None of the above

 

Q14. Time value of money supports the comparison of cash flows recorded at different time period by

a) Discounting all cash flows to a common point of time

b) Compounding all cash flows to a common point of time

c) using either a or b

d) None of the above

 

Q15. If the nominal rate of interest is 10% per annum and there is quarterly compounding, the effective rate of interest will be

a) 10% per annum

b) 10.10 per annum

c) 10.25%per annum

d) 10.38% per annum

 

Q16. Relationship between annual nominal rate of interest and annual effective rate of interest, if frequency of compounding is greater than one

a) effective rate greater than nominal rate

b) Effective rate less than nominal rate

c) Effective rate = nominal rate

d) None of the above 

 

Q17. Mr. X takes a loan of rs 50,000 from hdfc bank. The rate of interest is 10% per annum. The first installment will be paid at the end of year 5. Determine the amount of equal annual installments if mr. X wishes to repay the amount in five installments

a) Rs 19500

b) Rs 19400

c) rs 19310

d) None of the above

 

Q18. If nominal rate of return is 10% per annum and annual effective rate of interest is 10.25% per annum, determine the frequency of compounding

a) 1

b) 2

c) 3

d) None of the above

 

Q19. Risk of two securities with different expected return can be compared with

a) coefficient of variation

b) Standard deviation of securities

c) Variance of securities

d) None of the above

 

Q20. A portfolio having two risky securities can be turned risk less if

a) The securities are completely positively correlated

b) If the correlation ranges between zero and one

c) the securities are completely negatively correlated

d) None of the above 

 

Part 1: List for questions and answers of Strategic Financial Management

 

Q1. Answer: c

Q2. Answer: d

Q3. Answer: a

Q4. Answer: a

Q5. Answer: b

Q6. Answer: c

Q7. Answer: c

Q8. Answer: a

Q9. Answer: d

Q10. Answer: a

Q11. Answer: d

Q12. Answer: b

Q13. Answer: a

Q14. Answer: c

Q15. Answer: d

Q16. Answer: a

Q17. Answer: c

Q18. Answer: b

Q19. Answer: a

Q20. Answer: c