Practice Pakistan's most useful MCQs for competitive exams

What refers to an imaginary cost representing what will not be received if a particular strategy is rejected ?

• (A)  Opportunity cost
• (B)  Ghost cost
• (C)  Horizon cost
• (D)  Null cost

Answer

Submitted By :Ali Uppal

What method is often used in municipal project evaluations where benefits and costs accrue to different segments of the community ?

• (A)  Annual cost method
• (B)  Benefit-cost ratio
• (C)  Rate of return method
• (D)  EUAC

Answer

Submitted By :Ali Uppal

What is normally used to compare alternatives that accomplish the same purpose but have unequal lives ?

• (A)  Capitalized cost method
• (B)  Present worth method
• (C)  Annual cost method
• (D)  MARR

Answer

Submitted By :Ali Uppal

Capitalized cost of a project is also known as ____________________?

• (A)  Infinite cost
• (B)  Life cycle cost
• (C)  Life cost
• (D)  Project cost

Answer

Submitted By :Ali Uppal

What refers to the residual value of a company’s assets after all outside liabilities (shareholders excluded) have been allowed for ?

• (A)  Dividend
• (B)  Equity
• (C)  Return
• (D)  Par value

Answer

Submitted By :Ali Uppal

The amount of company’s profit that the board of directors of the corporation decides to distribute to ordinary shareholders is called ___________________?

• (A)  Dividend
• (B)  Return
• (C)  Share of stock
• (D)  Equity

Answer

Submitted By :Ali Uppal

What stock represents ownership and enjoys certain preferences than ordinary stock ?

• (A)  Authorized stock
• (B)  Preferred stock
• (C)  Incorporator’s stock
• (D)  Presidential stock

Answer

Submitted By :Ali Uppal

What represents the ownership of stockholders who have a residual claim on the assets of the corporation after all other claims have been settled ?

• (A)  Authorized capital stock
• (B)  Preferred stock
• (C)  Incorporator stock
• (D)  Common stock

Answer

Submitted By :Ali Uppal

Aggregation of individuals formed for the purpose of conducting a business and recognized by law as a fictitious person is called ________________________?

• (A)  Partnership
• (B)  Investors
• (C)  Corporation
• (D)  Stockholders

Answer

Submitted By :Ali Uppal

An association of two or more persons for the purpose of engaging into a business for profit is called ____________________?

• (A)  Entrepreneurship
• (B)  Partnership
• (C)  Proprietorship
• (D)  Corporation

Answer

Submitted By :Ali Uppal