Business Decision-Making Tools Quiz

What is the primary purpose of a Management Information System (MIS) in a business?

• To entertain employees during breaks

• To provide information for decision making at various business levels

• To manage employee payroll

• To design marketing campaigns

Which of the following is a tool used in project management to visualise the timeline of a project?

• SWOT Analysis

• Gantt Chart

• Balance Sheet

• PERT Chart

What does the term "net present value" (NPV) refer to in financial analysis?

• The total revenue generated by a project

• The difference between the present value of cash inflows and outflows

• The interest rate at which a project breaks even

• The future value of an investment

Which of the following is a characteristic of tactical level decision making in a business?

• Long-term planning

• Day-to-day operations

• Medium-term planning

• Setting the overall vision

In project management, what is the purpose of critical path analysis?

• To identify the shortest path to complete a project

• To determine the longest sequence of dependent tasks

• To allocate resources efficiently

• To assess project risks

Which financial tool is used to calculate the profitability of an investment by considering the time value of money?

• Internal Rate of Return (IRR)

• Gross Profit Margin

• Break-even Analysis

• Payback Period

What is the main function of computers in operational level decision making?

• To develop strategic plans

• To automate routine tasks and processes

• To conduct market research

• To create financial forecasts

Which of the following best describes discounted cash flow (DCF) analysis?

• A method to calculate the future value of an investment

• A technique to assess the value of an investment based on its expected future cash flows

• A tool to measure the liquidity of a company

• A strategy for reducing operational costs

What is the primary role of strategic level decision making in a business?

• To manage daily operations

• To set long-term goals and objectives

• To handle customer complaints

• To prepare financial statements

Which of the following is NOT typically a component of a Management Information System (MIS)?

• Hardware

• Software

• Data

• Office Furniture