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MCQs

Total Questions : 80 | Page 2 of 8 pages
Question 11. The after-tax average cost of the funds used by company in long run is equal to
  1.    weighted average cost of capital
  2.    economic value added
  3.    after-tax operating income
  4.    net income
 Discuss Question
Answer: Option A. -> weighted average cost of capital
Answer: (a).weighted average cost of capital
Question 12. An economic value added method is specific type of method to calculate
  1.    net income
  2.    nominal income
  3.    residual income
  4.    residual investment
 Discuss Question
Answer: Option C. -> residual income
Answer: (c).residual income
Question 13. The system in an organization, which defines behavior standards and code of conduct is known as
  1.    interactive control system
  2.    belief system
  3.    boundary system
  4.    diagnostic control system
 Discuss Question
Answer: Option C. -> boundary system
Answer: (c).boundary system
Question 14. The sum of working capital and current liabilities is equal to
  1.    imputed assets
  2.    residual assets
  3.    current assets
  4.    nominal assets
 Discuss Question
Answer: Option C. -> current assets
Answer: (c).current assets
Question 15. The rupee amount for required return of investment is subtracted from income to calculate
  1.    net income
  2.    after tax income
  3.    residual income
  4.    operating income
 Discuss Question
Answer: Option C. -> residual income
Answer: (c).residual income
Question 16. The return on sales is multiplied to investment turnover to calculate
  1.    residual income
  2.    return on investment
  3.    return on sales
  4.    investment turnover
 Discuss Question
Answer: Option B. -> return on investment
Answer: (b).return on investment
Question 17. The total available assets are subtracted from idle assets to calculate
  1.    market equity
  2.    total assets employed
  3.    total assets available
  4.    stockholders' equity
 Discuss Question
Answer: Option B. -> total assets employed
Answer: (b).total assets employed
Question 18. The measures that analyze the performance of a company, such as residual income, economic value added and customer satisfaction are collectively called
  1.    interactive control systems
  2.    belief systems
  3.    boundary systems
  4.    diagnostic control systems
 Discuss Question
Answer: Option D. -> diagnostic control systems
Answer: (d).diagnostic control systems
Question 19. If after-tax operating income is $185000, weighted average cost of capital is 11%, total assets are $485000 and total liabilities are $367000, then economic value added would be
  1.    $142,020
  2.    $172,020
  3.    $162,020
  4.    $152,020
 Discuss Question
Answer: Option B. -> $172,020
Answer: (b).$172,020
Question 20. The formal information systems, used in organizations to focus company's learning and attention, given to the most important strategic issues are known as
  1.    interactive control system
  2.    belief systems
  3.    boundary systems
  4.    diagnostic control systems
 Discuss Question
Answer: Option A. -> interactive control system
Answer: (a).interactive control system

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