MGT201 Final Term MCQs Updated by VU Topper RM

Q1. Vu-Topper RM (1 marks)

Which of the following is/are types of inventory?

1. Work in process
2. All of the given options
3. Finished goods
4. Raw material

Correct answer: All of the given options

Q2. Vu-Topper RM (1 marks)

According to Capital asset pricing model, the overpriced stocks have: A. Negative Alpha

B. Positive Alpha

C. Zero Beta D. Negative Beta

Q3. Vu-Topper RM (1 marks)

The ratio of standard deviation (SD) to mean of the distribution is known as: A. Correlation B. None of the above given options C. Covariance

D. Coefficient of variation

Q4. Vu-Topper RM (1 marks)

Which of the following is correct formula for contribution margin ratio?

1. Sales / Variable costs
2. Fixed cost / Contribution margin per unit
3. Total contribution margin/ Sales
4. Sales / Contribution margin per unit

Correct answer: Sales / Contribution margin per unit

Q5. Vu-Topper RM (1 marks)

If the trade discount of “2/10 net 30” is missed, then the rational manager should make the payment at which point of time?

1. None of the given option
2. As soon as possible
3. Should delay the payment even after the final due date
4. On the final due date

Correct answer: On the final due date

Q6. Vu-Topper RM (1 marks)

Generally, gross working capital is defined as: A. Current liabilities

B. Current assets

C. Total assets D. Current assets minus current liabilities

Q7. Vu-Topper RM (1 marks)

model (CAPM)?

1. All of the above given options
2. Risk Free Rate of Return
3. Market Rate of Return
4. Beta

Correct answer: All of the above given options

Q8. Vu-Topper RM (1 marks)

Assume that the market risk premium is 15%, risk free rate of return is 5% and beta of an asset X is 0.2. What will be the expected return of asset X under CAPM? A. 2%

B. 8%

C. 5% D. 6%

Q9. Vu-Topper RM (1 marks)

Coefficient of variation is a measure of relative dispersion (risk) per unit of: A. Expected volatility B. Expected risk C. All of the above given options

D. Expected return

Q10. Vu-Topper RM (1 marks)

Which of the following statement is true regarding covariance?

1. The covariance can never be negative
2. The covariance can take on any negative, positive or a zero value
3. The range of covariance lies between -1 to +1
4. The covariance is always positive because it is a squared value

Correct answer: The covariance can take on any negative, positive or a zero value

Q11. Vu-Topper RM (1 marks)

Which of the following statement is true regarding covariance?

1. The covariance can never be negative
2. The covariance can take on any negative, positive or a zero value
3. The range of covariance lies between -1 to +1
4. The covariance is always positive because it is a squared value

Correct answer: The covariance can take on any negative, positive or a zero value