Business Administration MCQs - 2025

The primary challenge is fostering inclusion and overcoming resistance (B). While competitive salaries (A) help attract talent, they don’t address cultural barriers. Option (C) contradicts diversity goals.

Financial markets channel savings to productive investments (C). Stock prices (A) and bond yields (B) are outcomes, not purposes.

Pay alone (A) doesn’t address retention. Career growth and job satisfaction (B) are proven to reduce turnover. Cutting training (C) harms long-term engagement.

• Succession planning focuses on grooming internal talent (B) to ensure leadership continuity, reducing reliance on external hires (A).

• It is strategic (long-term leadership pipeline), not operational (C).

Why It Matters:

• Companies like Apple and GE use succession planning to ensure smooth CEO transitions (e.g., Tim Cook succeeding Steve Jobs).

Segmentation breaks down heterogeneous markets into homogenous subgroups (B) for tailored strategies, unlike a uniform approach (A). Market size (C) is unrelated.

Lean production, rooted in Toyota’s system, targets waste reduction (B). Excess inventory (A) contradicts lean principles. Mass production (C) is a separate concept.

• Push strategies focus on pushing products through intermediaries (e.g., retailers) via trade promotions or incentives (B).

• Pull strategies (A and C) aim to attract customers directly (e.g., discounts, social media ads).

Herbert Simon’s bounded rationality theory states that managers make "satisficing" (good enough) decisions due to imperfect information and cognitive limits (B), not optimal ones (A).

Transformational leaders inspire through vision and motivation (C), unlike transactional (A) or authoritarian (B) styles.

• The cost of capital represents the minimum return a company must achieve on its investments to maintain its market value and satisfy investors (A).

• While it influences capital structure decisions (C) and project evaluation (B), its primary purpose is to set investor-driven return thresholds.

Laissez-faire leadership is hands-off, granting autonomy (C). Options (A) and (B) describe autocratic and micromanaging styles, respectively.

Engagement thrives on trust, growth opportunities, and communication (B). Micromanagement (A) and benefit cuts (C) harm engagement.

Contingency theory rejects a "one-size-fits-all" approach (A). Instead, it emphasizes adapting strategies to situational factors like environment, technology, and workforce (C).

The payback period fails to account for TVM (B) or profitability (C). It also ignores cash flows beyond the payback point (A is false).

Current ratio = Current Assets / Current Liabilities. Higher receivables (A) boost current assets, improving the ratio. Payables (B) increase liabilities, reducing it. Fixed assets (C) are non-current.

In the introduction stage, firms invest heavily in promotion (C) to build awareness. Competition (A) and profits (B) emerge later in the lifecycle.

While appraisals may inform pay (A), their core purpose is performance evaluation and developmental feedback (C). Personal goals (B) are secondary to organizational alignment.

Effective decision-making requires evaluating how choices align with long-term organizational objectives. While delegation (B) and data (C) are useful, they are not essential—unlike strategic foresight (A).

The 4 Ps form the core of the marketing mix, a strategic framework for planning and executing campaigns (B). While they influence branding (C) and CRM (A), the 4 Ps are fundamentally about strategy.

The bullwhip effect occurs when small demand changes at the retail level cause larger swings upstream (B), disrupting synchronization (A).