Human Resource Management (HRM) MCQS

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

If your income exceeds the amount that you wish to spend, you should your investments or loans.

A. reduce; repay existing

B. increase; repay existing

C. increase; obtain more

D. reduce; obtain more

Correct answer is: B. increase; repay existing

Which of the following is NOT a type of decision made to manage your liquidity?

A. How much money to maintain in your checking account

B. How much money to maintain in your savings account

C. Whether you should use credit cards as a means of borrowing money

D. How much money you can borrow to spend on a car

Correct answer is: D. How much money you can borrow to spend on a car

Which type of risk is eliminated by diversification?

A. Systematic risk

B. Unsystematic risk

C. Market risk

D. Interest rate risk

Correct answer is: B. Unsystematic risk

What does EBIT stand for?

A. Earnings Before Interest and Taxes

B. Earnings Before Income Taxes

C. Equity Before Interest and Taxes

D. Earnings Before Interest and Turnover

Correct answer is: A. Earnings Before Interest and Taxes

What does the term “blue chip” refer to?

A. High-risk stock

B. Large, stable, well-established company

C. New startup

D. Government bond

Correct answer is: B. Large, stable, well-established company

A portion of profits that a company distributes among its shareholders is known as:

A. Dividends

B. Retained Earnings

C. Capital Gain

D. Bonus Shares

Correct answer is: A. Dividends

Which of the following is NOT a key component of a complete personal financial plan?

A. Plan to manage your liquidity

B. Budget plan

C. Plan for working at a major brokerage firm

D. Plan for financing (managing credit and loans)

Correct answer is: C. Plan for working at a major brokerage firm

An appropriate financial plan is most likely NOT influenced by one’s:

A. Age

B. Wealth

C. Career decision

D. Gender

Correct answer is: D. Gender

What does the term “float” refer to in cash management?

A. Time between writing a check and funds being debited

B. Cash in hand

C. Petty cash

D. Bank overdraft

Correct answer is: A. Time between writing a check and funds being debited

Financial leverage is favorable when:

A. ROI > Cost of debt

B. ROI < Cost of debt

C. Tax rate is high

D. Sales are low

Correct answer is: A. ROI > Cost of debt