Tag: nature and significance of management

Questions Related to nature and significance of management

____________ acts as the binding force between departments of organization.

  1. Planning

  2. Coordination

  3. Work culture

  4. Organising


Correct Option: B

A manager has to coordinate the efforts of different people in a conscious and deliberate manner.

  1. True

  2. False


Correct Option: A

The process by which a manager synchronizes the activities of different departments is known as ______________.

  1. planning

  2. control

  3. co-ordination

  4. organising


Correct Option: C

___________ popularly known as the 'founder of modern management theory.'

  1. Frederick Taylor

  2. Luther Gulick

  3. Newmann and Summer

  4. Henry Fayol


Correct Option: D
Explanation:

Henry Fayol popularly known as the 'founder of modern management theory.' He was born in France in 1841. He developed 14 principles of management which act as a guidelines for managers to perform manegerial activities.

Companies with higher growth potential are likely to ______________.

  1. pay lower dividends

  2. Pay higher dividends

  3. Dividends are not affected by growth consideration

  4. None of the above


Correct Option: A
Explanation:

Generally a company with higher growth paternal are likely to pay lower dividends. This is because the companies wants to invest that money in earning higher income and growing at a higher rate which is in the benefit for the long term rather than paying dividend which will only benefit the company for a short term.

A decision to acquire a new and modern plant to upgrade an old one is a______________.

  1. Financing decision

  2. Working capital decision

  3. Investment decision

  4. Dividend decision


Correct Option: C
Explanation:
Investment Decision:
Investment decisions includes investment in fixed assets (called as capital budgeting). Investment in current assets are also a part of investment decisions called as working capital decisions.
It includes Decisions relating to the disposal and acquiring and upgrading new assets.

Higher dividends per share is associated with  ______________.

  1. High Earning, High Cash Flows, Unusable Earnings and Growth Opportunities

  2. High Earning, High Cash Flows, Stable Earnings and Growth Opportunities

  3. High Earning, High Cash Flows, Stable Earnings and Lower Growth Opportunities

  4. High Earning, Low Cash Flows, Stable Earnings and Lower Growth Opportunities


Correct Option: C
Explanation:

There are two primary causes for increases in a company’s dividend per share payout.

 The first is simply an increase in the company's net profits out of which dividends are paid. 
The second is a shift in the company’s growth strategy that leads the company to decide to expend less of its earnings in seeking growth and expansion, thus leaving a larger share of profits available to be returned to equity investors in the form of dividends.