Dandi Boru College Jimma Campus

MODEL EXAMS (MULTIPLE CHOICES)

Instruction:- Choose the Correct Answer to the Questions that are listed below.
1. Which of the following is not a function of management?

a. Planning

b. Organizing

c. Staffing

d. Communicating

2. Which of the following is an example of a planning activity?

a. Hiring employees

b. Developing a marketing strategy

c. Distributing products

d. Resolving conflicts

3. Which of the following is not a level of management?

a. Top-level management

b. Middle-level management

c. Front-line management

d. Supervisory management

4. Which of the following is an example of an organizing activity?

a. Setting goals and objectives

b. Preparing budgets

c. Assigning tasks to employees

d. Developing employee training programs

5. Which of the following is a key characteristic of effective management?

a. Autocratic decision-making
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b. Lack of communication

c. Empowering employees

d. Resisting change

6. Which of the following is an example of a staffing activity?

a. Developing employee schedules

b. Evaluating employee performance

c. Motivating employees

d. Delegating tasks

7. Which of the following is not a type of management skill?

a. Technical

b. Interpersonal

c. Conceptual

d. Mechanical

8. Which of the following is an example of a directing activity?

a. Developing a budget

b. Recruiting employees

c. Training employees

d. Providing feedback to employees

9. Which of the following is an example of a controlling activity?

a. Developing a marketing strategy

b. Providing employee rewards

c. Monitoring employee performance

d. Developing company policies

10. Which of the following is an example of a human resource manager's responsibility?

a. Developing a product strategy

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b. Creating a budget

c. Hiring new employees

d. Distributing products

11. Which of the following is not a type of organizational structure?

a. Functional

b. Divisional

c. Geographical

d. Independent

12. Which of the following is an example of a functional structure?

a. A hospital with different departments for surgery, pediatrics, and emergency care

b. A company with different divisions for manufacturing and sales

c. A multinational company with different offices in different countries

d. A company with different product lines, such as electronics and appliances

13. Which of the following is an example of a divisional structure?

a. A hospital with different departments for surgery, pediatrics, and emergency care

b. A company with different divisions for manufacturing and sales

c. A multinational company with different offices in different countries

d. A company with different product lines, such as electronics and appliances

14. Which of the following is an example of a hierarchical structure?

a. A flat organization with few levels of management

b. A company with a strong emphasis on teamwork and collaboration

c. A university with multiple departments and faculties

d. A small business with a single owner and a few employees

15. Which of the following is an example of centralized decision-making?

a. A company where all important decisions are made by the CEO

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b. A company where each department has its own decision-making authority

c. A company where all employees are empowered to make decisions

d. A company where decisions are made by teams or committees

16. Which of the following is an example of decentralized decision-making?

a. A company where all important decisions are made by the CEO

b. A company where each department has its own decision-making authority

c. A company where all employees are empowered to make decisions

d. A company where decisions are made by teams or committees

17. Which of the following is an example of a matrix structure?

a. A hospital with different departments for surgery, pediatrics, and emergency care

b. A company with different divisions for manufacturing and sales

c. A multinational company with different offices in different countries

d. A company where employees report to both functional and project managers

18. Which of the following is an example of a network structure?

a. A hospital with different departments for surgery, pediatrics, and emergency care

b. A company with different divisions for manufacturing and sales

c. A multinational company with different offices in different countries

d. A company where employees work on projects with external partners and contractors

19. Which of the following is not a benefit of teamwork?

a. Increased efficiency and productivity

b. Improved communication and collaboration

c. Reduced conflict and stress

d. Decreased accountability and responsibility

20. Which of the following is an example of a cross-functional team?

a. A team of software engineers working on a project

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b. A team of accountants working on a financial report

c. A team of marketing specialists working on a campaign

d. A team of customer service representatives working on a call center

21. Which of the following is not a characteristic of effective teams?

a. Open communication

b. Shared leadership

c. Consensus decision-making

d. Lack of diversity

22. Which of the following is not a common communication barrier?

a. Cultural differences

b. Language barriers

c. Active listening

d. Personality differences

23. Which of the following is an example of a nonverbal communication channel?

a. A memo

b. An email

c. A videoconference

d. A facial expression

24. Which of the following is not a type of organizational culture?

a. Clan

b. Bureaucratic

c. Hierarchical

d. Networked

25. Which of the following is not a function of organizational culture?

a. Providing a sense of identity and purpose

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b. Defining acceptable behavior and norms

c. Facilitating change and innovation

d. Controlling employee behavior through rules and regulations.

26. What is the primary objective of marketing?

a. To make a profit

b. To increase sales

c. To satisfy customer needs and wants

d. To create awareness

27. Which of the following is NOT one of the four Ps of marketing?

a. Product

b. Place

c. Price

d. Promotion

28. What is the process of dividing a large market into smaller groups with different needs called?

a. Customer analysis

b. Market analysis

c. Market segmentation

d. Market research

29. What is the term for a group of potential customers with a similar need or want for a product?

a. Target market

b. Mass market

c. Market segment

d. Niche market

30. What is the term for the ability of a company to price its products higher than its competitors due to
its brand reputation?

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a. Price leadership

b. Brand equity

c. Market power

d. Premium pricing

31. Which of the following is a key component of a company's marketing mix?

a. Competitive analysis

b. Social media strategy

c. Sales forecasting

d. Product design

32. What is the term for a marketing strategy that emphasizes high product quality and premium
pricing?

a. Skimming

b. Penetration pricing

c. Market segmentation

d. Differentiation

33. What is the process of developing and promoting favorable relationships with the public and the
media called?

a. Integrated marketing communication

b. Public relations

c. Direct marketing

d. Sales promotion

34. What is the term for the process of creating, promoting, and delivering a product to meet customer
needs?

a. Marketing strategy

b. Customer relationship management

c. Supply chain management

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d. Product lifecycle

35. Which of the following is a characteristic of a successful marketing plan?

a. Lack of competition

b. Ambiguous goals

c. Effective communication

d. Short-term focus

36. What is the process of creating a name, symbol, or design that distinguishes a company's products
from its competitors?

a. Brand identity

b. Brand positioning

c. Brand equity

d. Brand extension

37. What is the term for the process of offering a variety of products to satisfy different customer needs
and wants?

a. Product differentiation

b. Product diversification

c. Market segmentation

d. Product development

38. Which of the following is an example of direct marketing?

a. Television ads

b. Social media posts

c. Mail order catalogs

d. Point-of-sale displays

39. What is the term for the process of finding and attracting potential customers to a company's
products?

a. Sales forecasting

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b. Market segmentation

c. Lead generation

d. Competitive analysis

40. Which of the following is a potential disadvantage of an effective marketing strategy?

a. Increased customer loyalty

b. Decreased brand recognition

c. Increased competition

d. Decreased sales revenue

41. What is the process of monitoring a product's performance in the market and adjusting marketing
strategies accordingly?

a. Competitive analysis

b. Market research

c. Sales forecasting

d. Product differentiation

42. Which of the following best describes the concept of customer lifetime value?

a. The total revenue generated by a customer over his or her lifetime

b. The amount of money a customer spends on an individual purchase

c. The percentage of customers who return to a company for repeat purchases

d. The total number of customers served by a company in a given time period

43. What is a focus group?

a. A panel of experts who evaluate a company's products

b. An anonymous survey used to collect market research data

c. An organized discussion with a group of consumers used to gather feedback on a product or idea

d. A sales forecasting technique used to predict future demand for a product

44. Which of the following is a social media platform commonly used for marketing purposes?

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a. LinkedIn

b. Spotify

c. Skype

d. Twitch

45. What is the process of influencing how a customer perceives a product or brand?

a. Product positioning

b. Brand management

c. Market segmentation

d. Supply chain management

46. What is a SWOT analysis?

a. A technique for forecasting future sales revenue

b. An analysis of a company's strengths, weaknesses, opportunities, and threats

c. A market research survey used to identify potential target markets

d. A sales forecasting technique used to predict market demand

47. What is the term for a company's plan to allocate its marketing budget across various marketing
channels?

a. Sales forecasting

b. Integrated marketing communication

c. Marketing mix

d. Marketing budget

48. What are marketing intermediaries?

a. Companies that manufacture the products

b. Companies that transport products to retailers

c. Companies that sell products to consumers

d. Companies that help distribute products to customers

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49. What is the process of creating a unique and valuable position within a market to attract and retain
customers?

a. Product differentiation

b. Market segmentation

c. Product diversification

d. Supply chain management

50. What is the term for the process of monitoring a product's performance and making changes to the
marketing mix to increase sales and profitability?

a. SWOT analysis

b. Market share analysis

c. Product development

d. Marketing optimization

51. What is the difference between domestic and international marketing?

a. Domestic marketing does not require knowledge of international trade regulations

b. International marketing involves marketing products in multiple countries

c. Domestic marketing focuses on local customers, while international marketing focuses on foreign
customers

d. International marketing is more expensive than domestic marketing

52. What is a key factor that companies must consider when developing an international marketing
strategy?

a. Language barriers

b. Cultural differences

c. Competition in the domestic market

d. The cost of labor

53. What is the process of adapting a product to meet the unique needs of foreign customers?

a. Standardization

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b. Localization

c. Internationalization

d. Globalization

54. What is a tariff?

a. A tax on imports or exports

b. A fee for shipping goods overseas

c. A payment made to a broker for international shipping services

d. A requirement for products to be labeled in multiple languages

55. What is a joint venture?

a. A partnership between two or more companies in which they share resources to achieve a common
goal

b. A legal agreement that allows a company to sell its products in a foreign market

c. A method of financing international trade that involves using a letter of credit

d. A document that outlines the terms of a sale of goods from one company to another

56. Which of the following is a potential advantage of exporting?

a. Reduced risk

b. High profits

c. Increased control over distribution

d. Reduced shipping costs

57. What is a licensing agreement?

a. A legal agreement that allows one company to use another company's intellectual property in
exchange for a fee

b. An agreement between countries to reduce tariffs on certain goods

c. A contract between two companies to share resources and achieve a common goal

d. A document that outlines the terms of a sale of goods from one company to another

58. Which of the following is a potential disadvantage of direct investment in a foreign market?
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a. High risk

b. High shipping costs

c. Limited control over distribution

d. Limited access to local knowledge and resources

59. What is a cultural barrier to international marketing?

a. Different laws and regulations in foreign markets

b. Language differences

c. Differences in consumer preferences and values

d. Different distribution channels in foreign markets

60. What is a product adaptation for international markets?

a. Modifying a product to meet the unique needs of foreign customers

b. Developing a new product specifically for a foreign market

c. Standardizing a product for global distribution

d. Creating a product for export only

61. What is market segmentation?

a. The process of dividing a market into smaller groups with similar needs or characteristics

b. The process of sourcing materials for production

c. The process of distributing products to retailers

d. The process of promoting products to customers

62. What is a multinational corporation?

a. A company that operates in multiple countries

b. A company that operates exclusively in one country

c. A company that has joint ventures with other companies in foreign markets

d. A company that exports its products to foreign markets

63. What is a trade barrier?

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a. Any obstacle to international trade, such as tariffs, quotas, or regulations

b. A legal requirement for foreign companies to have a local partner in order to do business in a country

c. A requirement that products be certified by a government agency before they can be sold in a foreign
market

d. A requirement for products to be labeled in multiple languages

64. What is a market entry strategy?

a. A plan for how a company will enter a new market

b. A sales pitch to potential customers

c. A process for sourcing materials for production

d. A promotional campaign for a new product

65. What is a distribution strategy?

a. A plan for how products will be delivered to customers

b. A plan for how products will be promoted to customers

c. A plan for how products will be manufactured

d. A plan for how products will be priced

66. What is product standardization for international markets?

a. Developing a new product specifically for a foreign market

b. Modifying a product to meet the unique needs of foreign customers

c. Standardizing a product for global distribution

d. Creating a product for export only

67. Which of the following best describes a global marketing strategy?

a. A standardized approach to marketing that ignores cultural differences

b. An approach that focuses on adapting products to meet the unique needs of every foreign market

c. An approach that balances standardization with local adaptation to achieve a consistent brand image

d. An approach that focuses exclusively on selling products in domestic markets

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68. What is an international pricing strategy?

a. A plan for how products will be priced in foreign markets

b. A plan for how products will be produced in foreign markets

c. A plan for how products will be promoted in foreign markets

d. A plan for how products will be distributed in foreign markets

69. What is a global brand?

a. A brand that is recognized in multiple countries

b. A brand that is only sold in one country

c. A brand that is adapted to meet the unique needs of every foreign market

d. A brand that is exclusively sold in foreign markets

70. What is the difference between a franchise and a licensing agreement?

a. A franchise is a partnership between two companies, while a licensing agreement is a legal agreement
allowing a company to use another company's intellectual property

b. A franchise involves selling the rights to use a company's business model, while a licensing agreement
involves selling the rights to use a company's intellectual property

c. A franchise is a type of joint venture, while a licensing agreement is a type of direct investment

d. A franchise is a type of direct investment, while a licensing agreement is a type of market entry
strategy

71. What is a product positioning for international markets?

a. The process of developing a marketing message that appeals to foreign customers

b. The process of adapting a product to meet the unique needs of foreign customers

c. The process of finding the most favorable position for a product in a foreign market

d. The process of standardizing a product for global distribution

72. What is a trade agreement?

a. An agreement between countries to reduce or eliminate trade barriers

b. A legal requirement for foreign companies to have a local partner in order to do business in a country

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c. A requirement that products be certified by a government agency before they can be sold in a foreign
market

d. A requirement for products to be labeled in multiple languages

73. Which of the following is a potential disadvantage of an international marketing strategy?

a. Increased sales and profits

b. Increased competition

c. Increased cultural awareness

d. Increased control over distribution

74. What is a cultural adaptation for international marketing?

a. Modifying a product to meet the unique needs of foreign customers

b. Creating a product for export only

c. Standardizing a product for global distribution

d. Developing a new product specifically for a foreign market

75. What is cultural convergence?

a. The process by which cultures become more similar over time

b. The process by which cultures become more diverse over time

c. The process by which cultures are forced to adapt to one dominant culture

d. The process by which cultures become isolated and resistant to change.

76. What is operation management?

a. The process of designing and managing processes to produce goods and services

b. The process of creating a marketing strategy for a business

c. The process of developing a brand identity for a business

d. The process of managing the financial resources of a business

77. What are the five performance objectives in operation management?

a. Quality, speed, flexibility, innovation, and cost

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b. Quality, cost, marketing, sales, and customer service

c. Innovation, sustainability, growth, revenue, and cost reduction

d. Quality, production, performance, customer service, and revenue

78. What is the goal of lean management?

a. Eliminating waste in the production process

b. Maximizing revenue

c. Reducing customer complaints

d. Increasing employee satisfaction

79. What is Six Sigma?

a. A methodology used to improve processes by reducing defects

b. A form of supply chain management

c. A strategy for reducing employee turnover

d. A tool for tracking sales performance

80. What is supply chain management?

a. The process of managing the flow of goods and services from the supplier to the customer

b. The process of managing the cash flow of a business

c. The process of managing the production process

d. The process of managing human resources

81. What is a value chain?

a. The series of activities that a company performs in order to create and deliver a product to the
customer

b. The amount of money charged for a product or service

c. The process of developing a marketing plan

d. The process of developing a business strategy

82. What is a bottleneck?

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a. A point in the production process where capacity is limited

b. A production process that is optimized for maximum efficiency

c. A process that has no capacity limitations

d. A process that is optimized for flexibility

83. What is a key performance indicator (KPI)?

a. A metric used to measure the success of an operation

b. A marketing tool used to attract customers

c. A tool used to improve employee satisfaction

d. A measurement of profitability

84. What is capacity planning?

a. The process of determining the quantity of goods or services that can be produced in a given time
period

b. The process of determining the price of a product or service

c. The process of managing the production process

d. The process of developing a marketing plan

85. What is production planning?

a. The process of determining how to produce goods or services

b. The process of managing the financial resources of a business

c. The process of creating a marketing strategy

d. The process of managing human resources

86. What is material requirements planning (MRP)?

a. A software tool used to plan the production process

b. A tool used to track sales performance

c. A tool used to manage employee performance

d. A tool used to manage the supply chain

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87. What is just-in-time (JIT) manufacturing?

a. A production system that produces goods only when they are needed

b. A production system that creates a large inventory of goods

c. A production system that is optimized for capacity

d. A production system that is optimized for flexibility

88. What is capacity utilization?

a. The percentage of available production capacity that is actually being used

b. The percentage of total revenue that is being used for production costs

c. The percentage of goods that are shipped on time

d. The percentage of products that meet quality standards

89. What is a work order?

a. A document that specifies the details of a production job

b. A legal document that outlines the terms of a sale or purchase

c. A marketing tool used to attract customers

d. A tool used to track employee performance

90. What is a bill of materials?

a. A document that lists the materials needed for a production job

b. A financial document that outlines the cost of goods sold

c. A marketing document that lists the benefits of a product or service

d. A document that outlines the terms of a sale or purchase]

91. What is production control?

a. The process of managing the production process

b. The process of managing cash flow

c. The process of developing a marketing plan

d. The process of managing human resources

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92. What is a quality control system?

a. A system used to ensure that the products or services produced by a company meet quality standards

b. A system used to manage employee performance

c. A system used to manage the supply chain

d. A system used to track sales performance

93. What is the process capability index (Cpk)?

a. A measure of how well a process can produce products within specified limits

b. A measure of profitability

c. A measure of customer satisfaction

d. A measure of employee satisfaction

94. What is statistical process control (SPC)?

a. A methodology used to monitor the production process and detect errors

b. A methodology used to improve employee performance

c. A methodology used to optimize production capacity

d. A methodology used to manage the supply chain

95. What is a work center?

a. A specific location in a production facility where a specific operation is performed

b. A sales location where customers can purchase a product or service

c. A marketing tool used to attract new customers

d. A tool used to manage employee performance

96. What is a routing?

a. A document that specifies the operations to be performed during a production job

b. A legal document that outlines the terms of a sale or purchase

c. A tool used to manage the supply chain

d. A tool used to track employee performance

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97. What is a kanban system?

a. A system that uses visual cues to guide the production process

b. A system that tracks sales performance

c. A system that manages employee performance

d. A system that manages the supply chain

98. What is total quality management (TQM)?

a. A philosophy that focuses on continuous improvement in all areas of an operation

b. A methodology for managing human resources

c. A methodology for managing the supply chain

d. A methodology for managing the financial resources of a business

99. What is the difference between a push and pull production system?

a. A push system produces goods based on a forecast, while a pull system produces goods based on
customer demand

b. A push system produces goods based on customer demand, while a pull system produces goods
based on a forecast

c. A push system is optimized for maximum efficiency, while a pull system is optimized for flexibility

d. A push system is used in service industries, while a pull system is used in manufacturing industries

100. What is a process map?

a. A visual representation of a production process

b. A financial document that outlines the cost of goods sold

c. A marketing document that lists the benefits of a product or service

d. A document that outlines the terms of a sale or purchase

101. What is financial management?

a. The process of analyzing a firm's income statement and balance sheet

b. The process of managing a firm's financial resources

c. The process of developing a marketing plan

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d. The process of managing human resources

102. What is the goal of financial management?

a. Maximizing shareholder wealth

b. Maximizing revenue

c. Minimizing employee turnover

d. Minimizing operational expenses

103. What is the difference between accounting and financial management?

a. Accounting focuses on recording financial transactions, while financial management focuses on

managing financial resources

b. Accounting focuses on creating a marketing plan, while financial management focuses on creating a
budget

c. Accounting focuses on managing human resources, while financial management focuses on managing
the supply chain

d. Accounting focuses on developing a business strategy, while financial management focuses on

managing cash flow

104. What is an income statement?

a. A financial statement that shows a company's revenues and expenses over a period of time

b. A legal document that outlines the terms of a sale or purchase

c. A marketing tool used to attract customers

d. A tool used to improve employee performance

105. What is a balance sheet?

a. A financial statement that shows a company's assets, liabilities, and equity at a specific point in time

b. A marketing tool used to attract customers

c. A legal document that outlines the terms of a sale or purchase

d. A tool used to manage employee performance

106. What is cash flow analysis?

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a. A tool used to determine the cash inflows and outflows of a business

b. A tool used to track sales performance

c. A tool used to manage the supply chain

d. A tool used to manage human resources

107. What is working capital?

a. The difference between current assets and current liabilities

b. The difference between total assets and total liabilities

c. The total amount of cash a business has on hand

d. The total amount of debt a business has

108. What is capital budgeting?

a. The process of analyzing and selecting long-term investment opportunities

b. The process of managing short-term cash flow

c. The process of managing the supply chain

d. The process of hiring and training employees

109. What is cost of capital?

a. The rate of return required by investors to invest in a company

b. The cost of goods sold in a production process

c. The cost of financing a company's operations

d. The total cost of producing a product

110. What is the difference between debt and equity financing?

a. Debt financing involves borrowing money that must be repaid with interest, while equity financing
involves selling ownership in the company

b. Debt financing involves selling ownership in the company, while equity financing involves borrowing
money that must be repaid with interest

c. Debt financing involves issuing stock, while equity financing involves issuing bonds

d. Debt financing involves selling bonds, while equity financing involves selling stock
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111. What is a bond?

a. A debt instrument issued by a company or government to raise capital

b. An ownership instrument issued by a company or government to raise capital

c. A financial statement that shows a company's revenues and expenses over a period of time

d. A tool used to improve employee performance

112. What is the weighted average cost of capital (WACC)?

a. The weighted average of a company's cost of debt and cost of equity

b. The average cost of producing a product

c. The cost of borrowing money

d. The cost of selling stock

113. What is a dividend?

a. A payment made by a company to its shareholders

b. A payment made by a company to its creditors

c. A legal document that outlines the terms of a sale or purchase

d. A tool used to manage employee performance

114. What is the time value of money?

a. The concept that a dollar today is worth more than a dollar in the future

b. The concept that a dollar in the future is worth more than a dollar today

c. The concept that money has a constant value over time

d. The concept that money has no value over time

115. What is a financial ratio?

a. A financial measurement used to evaluate a company's performance

b. A marketing document that lists the benefits of a product or service

c. A legal document that outlines the terms of a sale or purchase

d. A tool used to manage human resources

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116. What is liquidity?

a. The ability of a company to meet its short-term obligations

b. The ability of a company to meet its long-term obligations

c. The ability of a company to generate revenue

d. The ability of a company to generate profits

117. What is profitability?

a. The amount of profit a company generates relative to its sales or assets

b. The amount of revenue a company generates relative to its expenses

c. The amount of revenue a company generates relative to its assets

d. The amount of profit a company generates relative to its expenses

118. What is leverage?

a. The use of debt financing to raise capital

b. The use of equity financing to raise capital

c. The use of bonds to raise capital

d. The use of stock to raise capital

119. What is a return on investment (ROI)?

a. A measure of how much profit a company generates from its investments

b. A measure of how much revenue a company generates from its investments

c. A measure of how much debt a company has relative to its assets

d. A measure of how much equity a company has relative to its assets

120. What is a net present value (NPV)?

a. A measure of the present value of future cash flows

b. A measure of the total value of a company's assets

c. A measure of how much equity a company has relative to its liabilities

d. A measure of how much debt a company has relative to its equity

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121. What is a payback period?

a. The amount of time it takes for an investment to generate enough cash to pay back the initial
investment

b. The amount of time it takes for a company to become profitable

c. The amount of time it takes for a company to pay off its debts

d. The amount of time it takes for a company to generate revenue

122. What is a financial forecast?

a. A prediction of a company's future financial performance

b. A prediction of a company's future market share

c. A prediction of a company's future customer satisfaction

d. A prediction of a company's future employee turnover

123. What is a financial plan?

a. A document that outlines a company's financial goals and strategies

b. A marketing tool used to attract customers

c. A legal document that outlines the terms of a sale or purchase

d. A tool used to manage human resources

124. What is financial risk?

a. The risk that a company will not be able to pay its debts

b. The risk that a company will not be profitable

c. The risk that a company's market share will decrease

d. The risk that a company's employees will leave

125. What is diversification?

a. The process of investing in different assets to reduce risk

b. The process of investing in a single asset to increase returns

c. The process of borrowing money to increase returns

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d. The process of managing the production process to maximize efficiency

126. Which of the following is not a step in the OR process?

A) Problem Formulation

B) Solution Implementation

C) Model Construction

D) Model Validation

127. Which of the following is a fundamental OR technique?

A) Simulation

B) Network Analysis

C) Queuing Theory

D) All of the above

128. Linear Programming focuses on:

A) Maximize or minimize objective

B) Finding optimal solution

C) Both A and B

D) None of the above

129. The Dual problem in Linear Programming is:

A) A different linear program from the original program

B) Derived from the original program

C) More complex than the original program

D) Not possible for every linear program

130. The transportation problem involves:

A) Minimizing transportation cost

B) Maximizing transportation cost

C) Minimizing production cost

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D) Maximizing production cost

131. In an Integer Programming problem, the decision variables are:

A) Real numbers

B) Integers

C) Both A and B

D) None of the above

132. In a network flow problem, the objective is to:

A) Minimize the amount of flow

B) Maximize the amount of flow

C) Balance the flow across the network

D) None of the above

133. Which of the following is an application of Queuing theory?

A) Finding the optimal inventory level

B) Designing optimal production schedules

C) Estimating waiting times in a service system

D) All of the above

134. Simulation is used to:

A) Model real-world systems

B) Validate models

C) Solve optimization problems

D) None of the above

135. In Simulation, what is a simulation clock?

A) A clock used to time the simulation

B) A variable that represents time in the simulation

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C) A measure of the simulation's accuracy

D) None of the above

136. A Decision Tree is used to:

A) Represent a problem and its solution options

B) Simulate a real-world system

C) Solve optimization problems

D) None of the above

137. In decision making under uncertainty, which of the following is true?

A) The decision maker has complete information about the outcomes

B) The decision maker has incomplete information about the outcomes

C) The decision maker doesn't know anything about the outcomes

D) None of the above

138. Sensitivity analysis is used to:

A) Determine the impact of changing model parameters

B) Test the model's validity

C) Optimize the model

D) None of the above

139. Goal programming is used to:

A) Solve multi-objective optimization problems

B) Solve single-objective optimization problems

C) Model real-world systems

D) All of the above

140. Which of the following is an example of a non-linear programming problem?

A) Maximize profit subject to production constraints

B) Minimize cost subject to resource constraints

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C) Maximize utilization subject to capacity constraints

D) Minimize production time subject to quality constraints

141. Which of the following is not true about the Simplex method?

A) It is used to solve linear programming problems

B) It is an iterative process

C) It always finds the optimal solution to a linear program

D) It can be used to solve both maximization and minimization problems

142. Which of the following is not a type of integer programming problem?

A) Binary programming

B) Knapsack problem

C) Mixed-integer programming

D) Continuous programming

143. What is the objective of the Branch and Bound method?

A) To find the optimal integer solution of an integer programming problem

B) To find the optimal fractional solution of an integer programming problem

C) To find the feasible region of a linear programming problem

D) None of the above

144. When solving a queuing problem, what is the arrival rate?

A) Probability of a customer arriving in the system

B) The number of customers arriving in the system

C) The number of customers leaving the system

D) The system utilization rate

145. In Monte Carlo simulation, what is a random variable?

A) A variable whose value is determined randomly

B) A variable whose value is known with certainty

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C) A variable whose value is determined by the simulation clock

D) None of the above

146. What is the objective of critical path analysis?

A) To find the shortest path through a network

B) To find the longest path through a network

C) To identify the activities in a project

D) To identify the critical activities in a project

147. When solving an optimization problem, what is a constraint?

A) An objective function to be optimized

B) A condition that must be satisfied

C) A measure of the accuracy of the solution

D) None of the above

148. What is the objective of simulation optimization?

A) To validate simulation models

B) To solve optimization problems using simulation

C) To optimize the simulation process

D) None of the above

149.) In decision making under risk, what is a payoff matrix?

A) A matrix that displays the payoffs for each decision and outcome

B) A matrix that displays the probabilities of each outcome

C) A matrix that displays the expected values of each outcome

D) None of the above

150.) What is the objective of inventory modeling?

A) To minimize inventory costs

B) To maximize inventory levels

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C) To optimize the inventory replenishment process

D) All of the above

151.Which of the following ratios measures the ability of the business firm to pay its
current liabilities and current portion of long-term debts as they mature?
A. Activity ratio
B. Profitability ratio
C. Liquidity ratio
D. Market ratio
152.Company J and Company K each recently reported the same EPS. Company J’s stock,
however, trades at a higher price. Which of the following statements is most correct?
A. Company J must have a higher P/E ratio.
B. Company J must have a higher market-to-book ratio.
C. Company J must be riskier.
D. Company J must have fewer growth opportunities.
153.Which of the following statements is most correct?
A. Using cash to purchase inventories will reduce a company’s quick ratio.
B. Using cash to purchase inventories will reduce the quick ratio and current ratio.
C. Using cash to purchase inventories will increase the quick ratio and current ratio.
D. Using cash to purchase inventories will increase a company’s quick ratio.
154.A company increases its debt ratio, but leaves its operating income (EBIT) and total
assets unchanged, which of the following may occur:
A. The company’s net income will rise.
B. The company’s liability will increase.
C. The company’s basic earning power will fall.
D. The company’s equity will increase.
155.ABC Corporation has 100,000 shares of common stock outstanding. The company’s
net income is $750,000 and its P/E ratio is 8. What is the company’s stock price?
A. $20.00
B. $30.00
C. $60.00
D. $50.00
156. ABC Inc. has earnings after interest but before taxes of $300. The company’s before tax
times-interest-earned ratio is 7.00. The company’s interest charges will be
A. $42.86
159
B. $50.00
C. $40.00
D. $60.00
157.Determine a firm’s total asset turnover (TAT) if its net profit margin (NPM) is 5
percent, total assets are birr 8 million, and ROI is 8 percent.

A. 1.60
B. 2.05

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C. 2.50
D. 4.00
158. The gross profit margin is unchanged, but the net profit margin declined over the
same period. This could have happened if
A. CGS increased relative to sales.
B. Sales increased relative to expenses.
C. The tax rate increased.
D. Dividends decreased
159.Quick asset does not include __.
A. Marketable securities.
B. Cash.
C. Receivables
D. Inventories.
160.Current ratio is 1, the difference between current assets and current liabilities will be
A. Positive.
B. Zero
C. Negative.
D. Undecided
161.Which of the following statements is wrong?
A. Financial management is studied under the assumption that there is a capital market and
capital
exchange in the business environment.
B. Financial management is studied in the context of a corporate form of business organization.
C. Corporations raise capital in financial markets by buying securities.
D. A successful study of financial management requires the need for a conceptual framework.
163.A capital market is a market in which the values of all assets and securities at any
instant in time fully reflect all available public information. This description may refer
A. Efficient capital markets
B. The Agency problem
C. The curse of competitive markets
D. The time value of money
164.For a healthy business the current ratio lies between
A. 0 to 1.5
B. 1.5 to 3
C. 3 to 4.5
D. 4.5 to 6
165.Inventory turnover measures the relationship of inventory with:
A. Average inventory
B. Cost of Goods Sold
C. Total Purchases
D. Total Assets
166.In Net Profit Ratio, the denominator is:
A. Net Sales
B. Total asset

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C. Credit Sales
D. Cost of goods sold
167.In quick ratio, quick assets are compared with:
A. Quick liabilities
B. Current Liabilities
C. Fixed Assets
D. CGS
168.Debt to total assets ratio can decrease by
A. Repaying a debt
B. Borrowing more
C. Issuing bonds or debentures
D. Issuing equity shares
169.During the year the business distributed a dividend of $60,000 with retained
earnings of double of the dividend. The net income reported by the business for the year
was
A. $120,000.
B. $150,000.
C. $180,000.
D. $165,000.
170.Other things are constant, which of the following will not affect the quick ratio?
A. Fixed assets are sold for cash.
B. Cash is used to purchase inventories.
C. Cash is used to pay the long-term debt.
D. Accounts receivable are collected.

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