Human Resource Management (HRM) MCQS

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

Cost of capital is:

A. Return expected by investors

B. Company profit

C. Tax rate

D. Interest rate only

Correct answer is: A. Return expected by investors

It reflects investor expectations.

NPV stands for:

A. Net Present Value

B. New Profit Value

C. Net Price Value

D. Normal Present Value

Correct answer is: A. Net Present Value

NPV evaluates investment profitability.

Risk-return tradeoff means:

A. High risk low return

B. Low risk high return

C. High risk high return

D. No relation

Correct answer is: C. High risk high return

Higher risk gives higher return.

A positive NPV indicates:

A. Loss

B. Break-even

C. Profitability

D. Risk

Correct answer is: C. Profitability

Positive NPV means project is profitable.

Which is not part of working capital?

A. Cash

B. Inventory

C. Machinery

D. Receivables

Correct answer is: C. Machinery

Machinery is fixed asset.

IRR is defined as:

A. Discount rate with zero NPV

B. Interest rate charged

C. Simple rate of return

D. Average return

Correct answer is: A. Discount rate with zero NPV

IRR makes NPV equal to zero.

Financial planning involves:

A. Short-term only

B. Long-term only

C. Both short and long term

D. No planning

Correct answer is: C. Both short and long term

It covers all financial decisions.

Which is a short-term financing source?

A. Equity shares

B. Debentures

C. Trade credit

D. Bonds

Correct answer is: C. Trade credit

Trade credit is short-term.

Which ratio measures profitability?

A. Current ratio

B. Debt ratio

C. Net profit margin

D. Quick ratio

Correct answer is: C. Net profit margin

It shows earning efficiency.

Working capital is:

A. Fixed assets

B. Current assets minus current liabilities

C. Long-term funds

D. Net profit

Correct answer is: B. Current assets minus current liabilities

It represents liquidity.