1. Which of the following statements is correct regarding profit maximization as the primary goal of
the firm?
a) Profit maximization considers the firm's risk level.
b) Profit maximization will not lead to increasing short-term profits at the expense of lowering expected
future profits.
c) Profit maximization does consider the impact on individual shareholder's EPS.
d) Profit maximization is concerned more with maximizing net income than the stock price.
2. __________________ is concerned with the maximization of a firm's stock price.
a) Shareholder wealth maximization
b) Profit maximization
c) Stakeholder welfare maximization
d) EPS maximization
3. ___________________ is the scientific technique for planning the ordering and usage of materials
at various levels of production and for monitoring the stocks during these transaction.
a) MPS
b) MRP
c) BOM
d) None of these
4. Procuring an item in staggering deliveries according to the delivery schedule finished to the supplier
by the buyer.
a) Seasonal Buying
b) Hand to mouth buying
c) Scheduled Buying
d) Tender Buying
5. Which of the following statements is not correct regarding earnings per share (EPS) maximization as
the primary goal of the firm?
a) EPS maximization ignores the firm's risk level.
b) EPS maximization does not specify the timing or duration of expected EPS.
c) EPS maximization naturally requires all earnings to be retained.
d) EPS maximization is concerned with maximizing net income.
6. __________________ is the time that elapses between issuing replenishment order and receiving
the material in stores.
a) Replenishment time
b) Lead time
c) Idle time
d) All of these
7. __________________ is concerned with the maximization of a firm's earnings after taxes.
a) Shareholder wealth maximization
b) Profit maximization
c) Stakeholder maximization
d) EPS maximization
8. The first activity of Purchasing cycle is
a) Communicating requirement to the purchase
b) Source Selection and development
c) Recognizing the need for procurement
d) Inspection of goods
9. What is the most appropriate goal of the firm?
a) Shareholder wealth maximization.
b) Profit maximization.
c) Stakeholder maximization.
d) EPS maximization.
10. __________________ is the task of buying goods of right quality, in the right quantities, at the right
time and at the right price.
a) Supplying
b) Purchasing
c) Scrutinizing
d) None of these