Human Resource Management (HRM) MCQS

Multiple choice Questions on Human Resource Management. Practice for fpsc ppsc exams

What is the main assumption of MM dividend irrelevance theory?

A. Perfect capital markets

B. No taxes

C. No transaction costs

D. All of the above

Correct answer is: D. All of the above

What does the term “capital structure” refer to?

A. Total assets

B. Mix of debt and equity

C. Fixed assets only

D. Current liabilities

Correct answer is: B. Mix of debt and equity

____________ is concerned with the acquisition, financing, and management of assets with some overall goal in mind.

A. Financial Management

B. Profit Maximization

C. Agency Theory

D. Social Responsibility

Correct answer is: A. Financial Management

Which of the following is an example of a current asset?

A. Machinery

B. Patents

C. Debtors (Accounts Receivable)

D. Goodwill

Correct answer is: C. Debtors (Accounts Receivable)

The money markets primarily deal with:

A. Securities with a life of more than one year

B. Long-term securities such as common stock

C. Short-term securities

D. Real estate investments

Correct answer is: C. Short-term securities

Which of the following statements about careers is INCORRECT?

A. The career choice is restricted to students completing their education

B. Many people change their career over time

C. A shift to a new career should be influenced by your views of satisfaction

D. Financial planning should align with career decisions

Correct answer is: A. The career choice is restricted to students completing their education

Which of the following is a method of capital budgeting?

A. Payback period

B. Internal Rate of Return

C. Net Present Value

D. All of the above

Correct answer is: D. All of the above

Which of these is a non-cash expense?

A. Rent expense

B. Salary expense

C. Depreciation

D. Interest expense

Correct answer is: C. Depreciation

The primary objective of financial management is to maximize ____________ wealth.

A. Stakeholders

B. Shareholders

C. Bondholders

D. Directors

Correct answer is: B. Shareholders

The return that lenders receive on bonds is called:

A. Dividends

B. Interest

C. Capital gain

D. Rent

Correct answer is: B. Interest