Which of the following is NOT considered a credit management decision?
Correct answer is: D. Investing money in a bank deposit
Human Resource Management (HRM) MCQS
Multiple choice Questions on Human Resource Management. Practice for fpsc ppsc exams
📚 Table of Content
Which of the following is most likely to be a fixed cost?
Correct answer is: D. Directors' remuneration
Planning that involves determining how much you should set aside each year for retirement is called:
Correct answer is: B. Retirement planning
What is the cost of debt generally lower than cost of equity?
Correct answer is: B. Tax deductibility of interest
What does the term “cost of capital” mean?
Correct answer is: B. Minimum return required by investors
An increase in the value of a sunk cost should have which effect on investment appraisal calculations?
Correct answer is: D. Have no effect
Maximizing shareholders’ wealth means maximizing the:
Correct answer is: C. Total market value of the firm’s common stock
Which of the following is a cash outflow from financing activities?
Correct answer is: B. Payment of dividends
Which of the following increases a firm’s financial risk?
Correct answer is: B. High debt in capital structure
The discount rate that results in a Net Present Value (NPV) of zero is known as the:
Correct answer is: C. Internal Rate of Return (IRR)
One limitation of the ____________ is that it is based on historical costs.
Correct answer is: C. Balance sheet
The concept that represents what you give up as a result of making an alternative decision is called:
Correct answer is: C. Opportunity cost
What is the formula for the payback period?
Correct answer is: A. Initial investment / Annual cash inflow
What is the formula for earnings per share (EPS)?
Correct answer is: A. Net income / Number of shares outstanding
Which of the following is NOT a method of capital investment appraisal?
Correct answer is: B. Net Book Value
____________ is access to funds to cover any short-term cash deficiencies.
Correct answer is: A. Liquidity
Your ____________ is the value of what you own minus the value of what you owe.
Correct answer is: D. Net worth
Which of these is a limitation of the payback period method?
Correct answer is: A. Ignores time value of money
What is the term for the return that is forgone by investing in a project rather than investing in financial markets at the same level of risk?
Correct answer is: C. Opportunity cost
If your income exceeds the amount that you wish to spend, you should ____________ your investments or ____________ loans.
Correct answer is: B. increase; repay existing