Human Resource Management (HRM) MCQS

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

The liability which should be paid within a period of one year is known as a/an:

A. Current asset
B. Current liability
C. Fixed asset
D. Long-term liability
Correct answer is: B. Current liability

Having a __________ level of future wealth (from more savings) requires you to sacrifice by having a __________ level of spending today.

A. Lower; lower
B. Higher; lower
C. Higher; higher
D. Lower; higher
Correct answer is: B. Higher; lower

What does the term “beta” measure?

A. Liquidity risk
B. Market risk of a stock
C. Inflation risk
D. Credit risk
Correct answer is: B. Market risk of a stock

What is the main advantage of leasing?

A. Tax benefit
B. Ownership at end
C. No fixed payment
D. Low cost maintenance
Correct answer is: A. Tax benefit

The ability of a firm to convert an asset into cash quickly without significant loss of value is called ____________.

A. Solvency
B. Liquidity
C. Leverage
D. Profitability
Correct answer is: B. Liquidity

The value of an option at the time of expiration is a function of:

A. Volatility and interest rate
B. Stock price and exercise price
C. Interest rate and stock price
D. Exercise price and volatility
Correct answer is: B. Stock price and exercise price

The excess of current assets over current liabilities is known as:

A. Gross working capital
B. Permanent working capital
C. Temporary working capital
D. Net working capital
Correct answer is: D. Net working capital

Which of the following is a source of long-term funds?

A. Debentures
B. Cash credit
C. Trade credit
D. Factoring
Correct answer is: A. Debentures

Which of the following has the highest claim on assets in liquidation?

A. Equity shareholders
B. Preference shareholders
C. Debenture holders
D. Retained earnings
Correct answer is: C. Debenture holders

Which of the following is a microeconomic variable that helps define the discipline of finance?

A. Inflation only
B. Risk and return only
C. Capital structure only
D. Risk and return and capital structure
Correct answer is: D. Risk and return and capital structure
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