Production and Operations Management Interview Questions | Production and Operations Management MCQs

Questions
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.

Answer: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

Answer: Shareholder wealth 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

Answer:MRP
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

Answer:Scheduled 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.

Answer: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

Answer:Lead time
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

Answer:Profit 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

Answer:Recognizing the need for procurement
9 What is the most appropriate goal of the firm?
A Shareholder wealth maximization.
B Profit maximization.
C Stakeholder maximization.
D EPS maximization.

Answer:Shareholder wealth 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

Answer:Purchasing
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