Human Resource Management (HRM) MCQS
Multiple choice Questions on Human Resource Management. Practice for fpsc ppsc exams
A.
Use of debt
B.
Use of equity
C.
Use of assets
D.
Use of cash
Correct answer is:
A. Use of debt
Explanation:
Debt increases returns and risk.
Financial Management Mcqs
A.
Low risk
B.
High risk
C.
No risk
D.
Stable income
Correct answer is:
B. High risk
Explanation:
More debt increases risk.
Financial Management Mcqs
A.
Profitability
B.
Liquidity
C.
Time to recover investment
D.
Risk
Correct answer is:
C. Time to recover investment
Explanation:
It shows recovery time.
Financial Management Mcqs
A.
NPV
B.
IRR
C.
Payback ratio
D.
Current ratio
Correct answer is:
D. Current ratio
Explanation:
Current ratio is liquidity measure.
Financial Management Mcqs
A.
Maximize sales
B.
Maximize profit
C.
Maximize shareholder wealth
D.
Minimize cost
Correct answer is:
C. Maximize shareholder wealth
Explanation:
The main goal is wealth maximization of shareholders.
Financial Management Mcqs
A.
Production
B.
Shareholder wealth
C.
Marketing
D.
Sales
Correct answer is:
B. Shareholder wealth
Explanation:
It impacts investor returns.
Financial Management Mcqs
A.
Dividend decision
B.
Working capital decision
C.
Long-term investment decision
D.
Financing decision
Correct answer is:
C. Long-term investment decision
Explanation:
It involves long-term investment planning.
Financial Management Mcqs
A.
Trade credit
B.
Bank overdraft
C.
Equity shares
D.
Cash sales
Correct answer is:
C. Equity shares
Explanation:
Equity is long-term financing.
Financial Management Mcqs
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
Explanation:
Money today is worth more than future.
Financial Management Mcqs
A.
Return expected by investors
B.
Company profit
C.
Tax rate
D.
Interest rate only
Correct answer is:
A. Return expected by investors
Explanation:
It reflects investor expectations.
Financial Management Mcqs
A.
Net Present Value
B.
New Profit Value
C.
Net Price Value
D.
Normal Present Value
Correct answer is:
A. Net Present Value
Explanation:
NPV evaluates investment profitability.
Financial Management Mcqs
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
Explanation:
Higher risk gives higher return.
Financial Management Mcqs
A.
Loss
B.
Break-even
C.
Profitability
D.
Risk
Correct answer is:
C. Profitability
Explanation:
Positive NPV means project is profitable.
Financial Management Mcqs
A.
Cash
B.
Inventory
C.
Machinery
D.
Receivables
Correct answer is:
C. Machinery
Explanation:
Machinery is fixed asset.
Financial Management Mcqs
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
Explanation:
IRR makes NPV equal to zero.
Financial Management Mcqs
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
Explanation:
It covers all financial decisions.
Financial Management Mcqs
A.
Equity shares
B.
Debentures
C.
Trade credit
D.
Bonds
Correct answer is:
C. Trade credit
Explanation:
Trade credit is short-term.
Financial Management Mcqs
A.
Current ratio
B.
Debt ratio
C.
Net profit margin
D.
Quick ratio
Correct answer is:
C. Net profit margin
Explanation:
It shows earning efficiency.
Financial Management Mcqs
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
Explanation:
It represents liquidity.
Financial Management Mcqs
A.
Investment decision
B.
Financing decision
C.
Production decision
D.
Dividend decision
Correct answer is:
C. Production decision
Explanation:
Production is not finance function.
Financial Management Mcqs
A.
Profitability
B.
Ability to pay short-term obligations
C.
Long-term growth
D.
Investment capacity
Correct answer is:
B. Ability to pay short-term obligations
Explanation:
Liquidity ensures short-term solvency.
Financial Management Mcqs
A.
Profit is maximum
B.
Revenue equals cost
C.
Loss occurs
D.
Fixed cost is zero
Correct answer is:
B. Revenue equals cost
Explanation:
At BEP, no profit no loss.
Financial Management Mcqs
A.
Debt ratio
B.
Current ratio
C.
Profit margin
D.
Return on equity
Correct answer is:
B. Current ratio
Explanation:
Current ratio measures liquidity.
Financial Management Mcqs
A.
Asset mix
B.
Debt and equity mix
C.
Revenue mix
D.
Cost structure
Correct answer is:
B. Debt and equity mix
Explanation:
It shows financing sources mix.
Financial Management Mcqs
A.
Federal Public Service Commission
B.
Provincial Services and General Administration Department
C.
National Highways Authority
D.
State Bank of Pakistan
Correct answer is:
B. Provincial Services and General Administration Department
Human Resource Management (HRM) MCQS