Human Resource Management (HRM) MCQS

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

Which of the following is a profitability ratio?

A. Net profit margin
B. Debt-equity ratio
C. Current ratio
D. Inventory turnover ratio
Correct answer is: A. Net profit margin

Financial leverage is considered favorable when:

A. ROI is less than cost of debt
B. ROI is greater than cost of debt
C. Tax rate is high
D. Sales are low
Correct answer is: B. ROI is greater than cost of debt

An investment which gives the holder a regular income in return for one initial payment may be known as a(n):

A. Ordinary share
B. Annuity
C. Return
D. Discount factor
Correct answer is: B. Annuity

A __________ represents the composition of a firm’s long-term funds and its capital structure.

A. Capitalisation
B. Over Capitalisation
C. Under Capitalisation
D. Market Capitalisation
Correct answer is: A. Capitalisation

Which of these is an example of a tangible source of short-term financing?

A. Commercial paper
B. Factoring
C. Accrued expenses
D. Bank loan
Correct answer is: D. Bank loan

Which of the following is an example of spontaneous financing?

A. Bank loan
B. Accounts payable
C. Lease financing
D. Debentures
Correct answer is: B. Accounts payable

What is sensitivity analysis in capital budgeting?

A. Change in NPV due to change in an input variable
B. Breakeven analysis
C. Regression analysis
D. Simulation analysis
Correct answer is: A. Change in NPV due to change in an input variable

The strength and vigor of a firm’s overall financial posture is referred to as:

A. Liquidity
B. Stability
C. Effectiveness
D. Profitability
Correct answer is: B. Stability

The job of a finance manager is confined to:

A. Raising funds
B. Management of cash
C. Raising of funds and their effective utilization
D. Preparing financial statements
Correct answer is: C. Raising of funds and their effective utilization

An ideal combination of borrowed and owned capital that helps attain the marginal goal is known as __________ capital structure.

A. Preference share
B. Optimum
C. Equity
D. Debt
Correct answer is: B. Optimum
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