Human Resource Management (HRM) MCQS

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

Which source is cheapest?

A. Equity

B. Debt

C. Preference shares

D. Retained earnings

Correct answer is: D. Retained earnings

Retained earnings have no explicit cost.

Financial leverage refers to:

A. Use of debt

B. Use of equity

C. Use of assets

D. Use of cash

Correct answer is: A. Use of debt

Debt increases returns and risk.

High leverage means:

A. Low risk

B. High risk

C. No risk

D. Stable income

Correct answer is: B. High risk

More debt increases risk.

Payback period measures:

A. Profitability

B. Liquidity

C. Time to recover investment

D. Risk

Correct answer is: C. Time to recover investment

It shows recovery time.

Which is not a capital budgeting technique?

A. NPV

B. IRR

C. Payback ratio

D. Current ratio

Correct answer is: D. Current ratio

Current ratio is liquidity measure.

Financial management primarily aims to:

A. Maximize sales

B. Maximize profit

C. Maximize shareholder wealth

D. Minimize cost

Correct answer is: C. Maximize shareholder wealth

The main goal is wealth maximization of shareholders.

Dividend policy affects:

A. Production

B. Shareholder wealth

C. Marketing

D. Sales

Correct answer is: B. Shareholder wealth

It impacts investor returns.

Which decision is related to capital budgeting?

A. Dividend decision

B. Working capital decision

C. Long-term investment decision

D. Financing decision

Correct answer is: C. Long-term investment decision

It involves long-term investment planning.

Which is a long-term source of finance?

A. Trade credit

B. Bank overdraft

C. Equity shares

D. Cash sales

Correct answer is: C. Equity shares

Equity is long-term financing.

Time value of money means:

A. Money loses value over time

B. Money gains value over time

C. Value of money is constant

D. No relation with time

Correct answer is: B. Money gains value over time

Money today is worth more than future.