Human Resource Management (HRM) MCQS

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

What does the retention ratio measure?

A. Dividends / Earnings
B. Retained earnings / Total equity
C. Retained earnings / Earnings after tax
D. Earnings / Share price
Correct answer is: C. Retained earnings / Earnings after tax

What is the goal of cash management?

A. Maximize cash balance
B. Minimize transaction needs
C. Maintain optimum cash balance
D. Invest all cash in fixed assets
Correct answer is: C. Maintain optimum cash balance

Which of the following is NOT a feature of preference shares?

A. Fixed dividend
B. Cumulative dividend
C. Voting rights
D. Priority over equity
Correct answer is: C. Voting rights

Which of the following is NOT a perspective of the Balanced Scorecard?

A. Customer
B. Internal business procedure
C. Human resource planning
D. Financial
Correct answer is: C. Human resource planning

Financial decisions involve:

A. Investment decision only
B. Financing decision only
C. Dividend decision only
D. All of the above: Investment, financing, and dividend decisions
Correct answer is: D. All of the above: Investment, financing, and dividend decisions

Contribution in break-even analysis is best expressed as:

A. Selling price minus absorption cost per unit
B. Selling price minus fixed cost per unit
C. Selling price minus variable cost per unit
D. Selling price minus total cost per unit
Correct answer is: C. Selling price minus variable cost per unit

A high debt-equity ratio generally indicates:

A. Low financial leverage
B. High financial risk
C. High liquidity
D. Low operating risk
Correct answer is: B. High financial risk

Which of the following is an internal source of finance?

A. Rights issue
B. Retained earnings
C. Bank loan
D. Debentures
Correct answer is: B. Retained earnings

What is the major disadvantage of equity financing?

A. Dilution of ownership
B. Fixed payment requirement
C. High financial risk
D. Short maturity
Correct answer is: A. Dilution of ownership

A particular investment is considered risky when:

A. It is dangerous
B. It has low returns
C. Its returns are uncertain
D. Its raw material is unavailable
Correct answer is: C. Its returns are uncertain
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