subject: business organisation & systems class: fy bba

DNYANSAGAR ARTS AND COMMERCE COLLEGE, BALEWADI, PUNE – 45

Subject: Business Organisation & Systems Class: FY BBA

PROF. VINAYAK GRAMOPADHYE www.dacc.edu.in

Unit 1 Nature and evolution of business

Q:1) Which of the following does not characterise business activity :

Sol:

A:) Production of goods and services

B:) Presence of risk

C:) Sale or Exchange of goods and services

D:) Salary or wages

Correct: D

Q:2) The industries which provide support services to other industries are known as :

Sol:

A:) Primary industries

B:) Secondary industries

C:) Commercial industries

D:) Tertiary industries

Correct: D

Q:3) Which of the following cannot be classified as an objective of business :

Sol:

A:) Investment

B:) Productivity

C:) Innovation

D:) Profit Earning.

Answer

Correct: A

Q:4) Business risk is not likely to arise due to :

Sol:

A:) Change in govt, policy

B:) Good management

C:) Employee dishonesty

D:) Power failure

Answer

Correct: B




Q:5) Specialized knowledge and skill is needed in :

Sol:

A:) Employment

B:) Non-Economic activity

C:) Profession

D:) None of these.

Answer

Correct: C

Q:6) The rework of risk is :

Sol:

A:) Success

B:) Failure

C:) Profit

D:) Loss

Answer

Correct: C

Q:7) It is not included in code of conduct:

Sol:

A:) Rules

B:) Dishonesty

C:) Integrity

D:) Morality

Answer

Correct: B

Q:8) Which has the large scope :

Sol:

A:) Trade

B:) Commerce

C:) Industry

D:) Business

Answer




Correct: B

Q:9) Which of the following cannot be classified as an auxiliary to trade :

Sol:

A:) Mining

B:) Insurance

C:) Warehousing

D:) Transport.

Answer

Correct: A

Q:10) Which of the broad categories of industries covers oil refinery and sugar mills :

Sol:

A:) Primary

B:) Secondary

C:) Tertiary

D:) None of these.

Answer

Correct: B

Q:11) The occupation in which people work for others and get remunerated in return is known as :

Sol:

A:) Business

B:) Employment

C:) Profession

D:) None of them.

Answer

Correct: B

Q:12) Free Guidance by a teacher to his son is :

Sol:

A:) An economic activity

B:) Profession

C:) Employment




D:) A non-economic activity.

Answer

Correct: D

Q:13) Capital is not an essential element in :

Sol:

A:) Employment

B:) Profession

C:) Business

D:) None of these

Answer

Correct: A

Q:14) Economic activity = ……….. + ………. :

Sol:

A:) Business + Profession

B:) Profession + Employment

C:) Business + Employment

D:) Business + Profession + Employment

Answer

Correct: D

Q:15) Business is :

Sol:

A:) Art

B:) Science

C:) Both A:) and (b)

D:) None of these

Answer

Correct: C

Q:16) Which of the following does not characterize business activity?

Sol:

A:) Production of goods & services

B:) Presence of risk




C:) Sale or exchange of goods and services

D:) Salary and wages

Correct: D

Q:17) Which of the broad categories of industries covers oil refinery and sugar mills?

Sol:

A:) Primary

B:) Secondary

C:) Tertiary

D:) None of these

Correct: B

Q:18) The occupation in which people work for others and get remunerated in return is known as

Sol:

A:) Business

B:) Profession

C:) Employment

D:) None of these

Correct: C

Q:19) Which of the following cannot be classified as an auxiliary to trade?

Sol:

A:) Mining

B:) Insurance

C:) Warehousing

D:) Transport

Correct: A

Q:20) The industries which provide support services to other industries are known as

Sol:

A:) Primary industries

B:) Secondary industries

C:) Commercial industries




D:) Tertiary industries

Correct: D

Q:21) Which of the following cannot be classified as an objective of business?

Sol:

A:) Investment

B:) Productivity

C:) Innovation

D:) Profit earning

Correct: A

Q:22) Business risk is not likely to arise due to

Sol:

A:) Changes in government policy

B:) Good management

C:) Employee dishonesty

D:) Power failure

Correct: B

Q:23) An individual who starts, creates and manages a new business can be called _____________.

Sol:

A:) A leader

B:) A manager

C:) A professional

D:) An entrepreneur

CORRECT: D

Q:24) Trademarks relate to _______.

Sol:

A:) Practice and knowledge acquired through experience

B:) The protection of proprietary information of commercial value

C:) The right to reproduce one’s own original work

D:) Brand identity

CORRECT: D




Q:25) Which could provide an individual with the motivation to start a new business venture?

Sol:

A:) The financial rewards.

B:) A desire to be independent.

C:) Risk taking

D:) All the above.

CORRECT: D

Q:26) Which of the following factors should not be included in PESTLE analysis?

Sol:

A:) Government re-cycling policy.

B:) Proposed reduction in interest rates.

C:) Competitor activity.

D:) Demographic changes.

CORRECT: C

Q:27) Which industrial sector promotes small-scale businesses and Entrepreneurship, and has lower

barriers to market entry?

Sol:

A:) Service.

B:) Manufacturing.

C:) Distribution.

D:) Agriculture.

CORRECT: A

Q:28) Why are small businesses important to a country's economy?

Sol:

A:) They give an outlet for entrepreneurs.

B:) They can provide specialist support to larger companies.

C:) They can be innovators of new products.

D:) All the above

CORRECT: D

Q:29) A business arrangement where one party allows another party to use a business name and sell its

products or services is known as__________.




Sol:

A:) A cooperative.

B:) A franchise.

C:) An owner-manager business.

D:) A limited company.

CORRECT: B

Q:30) Which of the following is the reason for business failure __________.

Sol:

A:) Lack of market research.

B:) Poor financial control.

C:) Poor management.

D:) All the above.

CORRECT: D

Q:31) The use of informal networks by entrepreneurs to gather information is known as _______.

Sol:

A:) Secondary research.

B:) Entrepreneurial networking.

C:) Informal parameters.

D:) Marketing

CORRECT: B

Q:32) Good sources of information for an entrepreneur about competitors can be obtained

from_________.

Sol:

A:) Websites

B:) Product information leaflets

C:) Company reports and published accounts

D:) All the above.

CORRECT: D

Q:33) A new venture's business plan is important because ______.

Sol:

A:) It helps to persuade others to commit funding to the venture.




B:) Can help demonstrate the viability of the venture

C:) Provides a guide for business activities by defining objectives

D:) All the above

CORRECT: D

Q:34) Primary data is________.

Sol:

A:) the most important data

B:) the data that is collected first

C:) new data specifically collected for a project.

D:) data that is collected second

CORRECT: C

Q:35) Innovation can best be defined as_______.

Sol:

A:) the generation of new ideas

B:) the evolution of new ideas

C:) the opposite of creativity

D:) the successful exploitation of new ideas

CORRECT: D

Q:36) Which of these statements best describes the context for entrepreneurship?

Sol:

A:) Entrepreneurship takes place in small businesses.

B:) Entrepreneurship takes place in large businesses.

C:) Entrepreneurship takes place in a wide variety of contexts.

D:) Entrepreneurship does not take place in social enterprises.

CORRECT: C

Q:37) Entrepreneurs are motivated by _________.

Sol:

A:) money.

B:) personal values.

C:) pull influences.

D:) All the above

CORRECT: D




Q:38) Which of the following are described as one of the Big Five personality traits?

Sol:

A:) tolerance of others.

B:) need for achievement.

C:) propensity to leadership.

D:) locus of control.

CORRECT: B

Q:39) Which of the following is least likely to influence the timing of new business births?

Sol:

A:) Government policies

B:) Profitability

C:) Consumer expenditure

D:) Weather conditions

CORRECT: D

Q:40) Which of the following statements is false?

Sol:

A:) Market segmentation is a useful process for small businesses to undertake.

B:) Selling is essentially a matching process.

C:) A benefit is the value of a product feature to a customer.

D:) It is a good idea for small businesses to compete solely on price.

CORRECT: D

Q:41) The purpose of all good small business strategy is__________.

Sol:

A:) to increase turnover

B:) to increase profitability

C:) to achieve competitive advantage

D:) to achieve stated objectives.

CORRECT: D

Q:42) Which of the following is a recognized disadvantage of setting up as a start-up as compared with

other routes to market entry?




Sol:

A:) less satisfaction of the owners.

B:) less help from various agencies.

C:) there are more funds required

D:) there is a high failure rate.

CORRECT: D

Q:43) Someone legally appointed to resolve the financial difficulties of an insolvent firm is

called____________.

Sol:

A:) an administrator.

B:) a predator.

C:) an auditor.

D:) a turnaround consultant.

CORRECT: A

Q:44) Goods or services reach the market place through ________.

Sol:

A:) marketing channels.

B:) multilevel pyramids.

C:) monopolies.

D:) multiplication.

CORRECT: A

Q:45) To provide financial assistance to entrepreneurs the government has set up a number

of___________.

Sol:

A:) financial advisors.

B:) financial intermediaries

C:) Industrial estates

D:) financial institutions.

CORRECT: D

Q:46) State Industrial corporations engage in the development of__________.

Sol:

A:) industrial estates.




B:) institutional estates.

C:) individual investors.

D:) agricultural entrepreneurs.

CORRECT: A

Q:47) ________ is the first development bank of the country.

Sol:

A:) ICICI.

B:) IDBI.

C:) SFC:)

D:) IFCI.

CORRECT: D

Q:48) IFCI stands for_____________.

Sol:

A:) Industrial finance corporation of India

B:) Institutional finance corporation of India

C:) Industrial funding corporation of India

D:) Indian Finance Corporation and institution

CORRECT: A

Q:49) IFCI has been converted into a________.

Sol:

A:) joint stock company

B:) co-operative society

C:) partnership firm

D:) sole proprietorship

CORRECT: A

Q:50) SIDBI was set up as a subsidiary of_________.

Sol:

A:) IDBI

B:) IFCI

C:) ICICI

D:) SFC

CORRECT: A




Unit II Forms of Business Organization

Q:1) At least 10 adults, no maximum limit in case of ________

Sol:

A:) Cooperative Society

B:) Joint Hindu Family

C:) Partnership

D:) Company

Correct: A

Q:2) What is the limit of members in case of a Private Company?

Sol:

A:) 2

B:) 7

C:) 10

D:) 50

Correct: D

Q:3) The life of sole proprietorship business is ___________

Sol:

A:) Unstable

B:) Stable

C:) Very short life

D:) Long life

Correct: A

Q:4) Provision of residential accommodation to the members at reasonable rates is the objective of

Sol:

A:) Consumers cooperative

B:) Credit cooperative

C:) Housing cooperative

D:) Producers cooperative

Correct: C




Q:5) The capital of a company is divided into number of parts each one of which are called

Sol:

A:) Share

B:) Dividend

C:) Profit

D:) Interest

Correct: A

Q:6) The maximum number of partners allowed in the banking business are

Sol:

A:) Two

B:) Twenty

C:) No limit

D:) Ten

Correct: D

Q:7) In a cooperative society the principle followed is

Sol:

A:) One share one vote

B:) One man one vote

C:) No vote

D:) Multiple votes

Correct: A

Q:8) The structure in which there is separation of ownership and management as per law is called

Sol:

A:) Company

B:) All business organisations

C:) Partnership

D:) Sole proprietorship

Correct: A




Q:9) Co-operatives play an important role in:

Sol:

A:) aerospace.

B:) agriculture.

C:) manufacturing.

D:) all of the above.

Correct: B

Q:10) Which of the following is a characteristic of a co-operative?

Sol:

A:) profits are not subject to income tax.

B:) one vote per share.

C:) dividends are paid on a per share basis.


Correct: A

Q:11) A__________ provides for the greatest degree of continuity:

Sol:

A:) general partnership.

B:) joint venture.

C:) corporation.

D:) sole proprietorship.

Correct: C

Q:12) Which of the following is probably the most important reason for incorporating?

Sol:

A:) limited liability of shareholders.

B:) more money for investment.

C:) increased flexibility.

D:) shared management.

Correct: A




Q:13) A_____________ partner is an owner who has unlimited liability and is active in managing the

firm:

Sol:

A:) senior partner.

B:) general partner.

C:) silent partner.

D:) limited partner.

Correct: B

Q:14) A ___________ is a business with two or more owners:

Sol:

A:) corporation.

B:) conglomerate.

C:) partnership.

D:) public corporation.

Correct: C

Q:15) Which of the following is an advantage of a sole proprietorship?

Sol:

A:) ease of starting a business.

B:) being your own boss.

C:) pride of ownership.


Correct: D

Q:16) The form of business organization that has the largest sales volume is the:

Sol:

A:) partnership.

B:) corporation.

C:) cooperative.

D:) multinational.




Correct: B

Q:17) In case of ___________ Registration is compulsory

Sol:

A:) Sole Proprietorship

B:) Partnership

C:) None of these

D:) Company

Correct: D

Q:18) Hindu Succession Act was passed in _____________

Sol:

A:) 1952

B:) 1960

C:) 1932

D:) 1956

Correct: D

Q:19) A partner whose association with the firm is unknown to the general public is called

Sol:

A:) Active partner

B:) Sleeping partner

C:) Nominal partner

D:) Secret partner

Correct: D

Q:20) The Head of the joint Hindu family business is called

Sol:

A:) Manager

B:) Proprietor

C:) Karta




D:) Director

Correct: C

Q:21) Profits do not have to be shared. This statement refers to

Sol:

A:) Company

B:) Sole proprietorship

C:) Joint Hindu family business

D:) Partnership

Correct: B

Q:22) The board of directors of a joint stock company is elected by

Sol:

A:) General public

B:) Government bodies

C:) Shareholders

D:) Employees

Correct: C

Q:23) The karta in Joint Hindu family business has

Sol:

A:) No liability for debts

B:) Unlimited liability

C:) Joint liability

D:) Limited liability

Correct: B

Q:24) The most effective form of business organization for raising capital is the:

Sol:

A:) joint venture.

B:) partnership.




C:) corporation.

D:) proprietorship.

Correct: C

Q:25) The major advantage of a franchise is:

Sol:

A:) training and management assistance.

B:) personal ownership.

C:) nationally recognized name.


Correct: D

Q:26) Which of the following is an example of a non-profit organization?

Sol:

A:) Royal Bank.

B:) YMCA.

C:) BCE.

D:) Air Canada.

Correct: B

Q:27) Which of the following is an example of a public corporation?

Sol:

A:) Imperial Oil

B:) Hospital for Sick Children

C:) Mouvement Caisse Desjardin

D:) YMCA.

Correct: A

Q:28) A partner who is not actually involved in the partnership but lends his name for public relations

purposes is a:

Sol:




A:) silent partner.

B:) general partner.

C:) nominal partner.

D:) dominant partner.

Correct: C

Q:29) The main disadvantage of a general partnership is:

Sol:

A:) the unlimited liability of the partners.

B:) disagreement amongst partners.

C:) shared management.

D:) difficulty of termination.

Correct: A

Q:30) The simplest form of business ownership is a:

Sol:

A:) proprietorship.

B:) partnership.

C:) corporation.

D:) cooperative.

Correct: A

Q:31) The structure in which there is separation of ownership and management is called

Sol:

A:) Sole proprietorship

B:) Partnership

C:) Company

D:) All business organizations

Correct: C

Q:32) The karta in Joint Hindu family business has

Sol:

A:) Limited liability





C:) No liability for debts

D:) Joint liability

Correct: B

Q:33): In a cooperative society the principle followed is

Sol:



C:) No vote

D:) Multiple votes

Correct: B

Q:34) The board of directors of a joint stock company is elected by

Sol:

A:) General public


C:) Shareholders

D:) Employees

Correct: C

Q:35) The maximum number of partners allowed in the banking business are

Sol:

A:) Twenty

B:) Ten

C:) No limit

D:) Two

Correct: B

Q:36) Profits do not have to be shared. This statement refers to

Sol:

A:) Partnership




B:) Joint Hindu family business

C:) Sole proprietorship

D:) Company

Correct: C

Q:37) The capital of a company is divided into number of parts each one of which are called

Sol:

A:) Dividend

B:) Profit

C:) Interest

D:) Share

Correct: D

Q:38) The Head of the joint Hindu family business is called

Sol:

A:) Proprietor

B:) Director

C:) Karta

D:) Manager

Correct: C

Q:39) Provision of residential accommodation to the members at reasonable rates is the objective of

Sol:

A:) Producer’s cooperative

B:) Consumer’s cooperative


D:) Credit cooperative

Correct: C

Q:40) A partner whose association with the firm is unknown to the general public is called

Sol:

A:) Active partner


C:) Nominal partner

D:) Secret partner

Correct: D

Q:41) The structure in which there is separation of ownership and management is called:




Sol:

A:) Sole proprietorship

B:) Partnership

C:) Company

D:) All business organization

Correct: C

Q:42) In a co-operative society, the principle followed is :

Sol:



C:) No vote

D:) Multiple votes

Correct: B

Q:43) The maximum number of partners allowed in the banking business are :

Sol:

A:) Twenty

B:) Ten

C:) No limit

D:) Two.

Correct: D

Q:44) The capital of a company is divided into number of parts each one of which are called:

Sol:

A:) Dividend

B:) Profit

C:) Interest

D:) Share.

Correct: D

Q:45) Provision of residential accommodation to the members at reasonable rates is the objective of:

Sol:

A:) Producer’s cooperative

B:) Consumer’s cooperative





D:) Credit cooperative

Correct: C

Q:46) The karta in Joint Hindu Family business has :

Sol:

A:) Limited liability


C:) No liability for debts

D:) Joint liability

Correct: B

Q:47) The board of directors of a joint stock company is elected by :

Sol:

A:) General public


C:) Shareholders

D:) Employees

Correct: C

Q:48) Profits do not have to be shared. This statement refers to :

Sol:

A:) Partnership

B:) Joint Hindu Family business

C:) Sole proprietorship

D:) Company

Correct: C

Q:49) The Head of the Joint Hindu Family business is called :

Sol:

A:) Proprietor

B:) Director

C:) Karta

D:) Manager

Correct: C




Q:50) A partner whose association with the firm is unknown to the general public is called:

Sol:

A:) Active partner


C:) Nominal partner

D:) Secret partner

Correct: D

Unit III Setting up of a business enterprise

Q:1) Which of the following shows the process of creating something new?

Sol:

A:) Business model

B:) Modeling

C:) Creative flexibility

D:) Innovation

Correct: D

Q:2) The entrepreneur was distinguished from capital provider in:

Sol:

A:) Middle ages

B:) 17th century

C:) 18th century

D:) 19th and 20th century

Correct: C

Q:3)A corporate manager who starts a new initiative for their company which entails setting up a new

distinct business unit and board of directors can be regarded as:

Sol:

A:) Ecopreneur

B:) Technopreneur

C:) Intrapreneur

D:) Social Entrepreneur

Correct: C

Q:4)Family business always interested to handover the change of his business to:




Sol:

A:) Indian Administration Officers

B:) Professional Managers

C:) Next generation

D:) None of the above

Correct: C

Q:5)EDP (Entrepreneurship Development Programmes) is required to help:

Sol:

A:) Existing entrepreneurs

B:) First generation entrepreneurs

C:) Future generation entrepreneurs


Correct: B

Q:6)A Micro Enterprise is an enterprise where investment in plant and machinery does not exceed

(According to MSMED Act, 2006):

Sol:

A:) Rs. 25 Lakh

B:) Rs. 20 Lakh

C:) Rs. 15 Lakh

D:) Rs. 30 Lakh

Correct: A

Q:7) Why should an entrepreneur do a feasibility study for starting a new venture:

Sol:

A:) To identify possible sources of funds

B:) To see if there are possible barriers to success

C:) To estimate the expected sales

D:) To explore potential customers

Correct: B

Q:8) Which one of the following is the next stage to the Concept Stage of Product Planning and

Development Process?

Sol:

A:) Idea Stage

B:) Product Planning Stage




C:) Product Development Stage

D:) Test Marketing Stage

Correct: C

Q:9) What is the process by which individuals pursue opportunities without regard to resources they

currently control?

Sol:

A:) Start-up management

B:) Entrepreneurship

C:) Financial analysis

D:) Feasibility planning

Correct: B

Q:10)An individual who initiates, creates and manages a new business can be called _____________.

Sol:

A:) A leader

B:) A manager

C:) A professional

D:) An entrepreneur

Correct: B

Q:11)Which could provide an individual with the motivation to start a new business venture?

Sol:

A:) The financial rewards

B:) A desire to be independent

C:) Risk taking

D:) All the above

Correct: D

Q:12)Why are small businesses important to a country’s economy?

Sol:

A:) They give an outlet for entrepreneurs.

B:) They can provide specialist support to larger companies.

C:) They can be innovators of new products.

D:) All the above

Correct: D





Sol:

A:) ICICI.

B:) IDBI.

C:) SFC.

D:) IFCI.

Correct: D

Q:14)IFCI stands for_____________.

Sol:




D:) Indian finance corporation and institution

Correct: A

Q:15)Large investment is made in fixed assets, the project will be termed as __________.

Sol:

A:) Capital Intensive

B:) Labour Intensive

C:) Product Intensive

D:) Market Intensive

Correct: A

Q:16)New Small Scale industries are exempted from the payment of income tax under section 80J is

called __________.

Sol:

A:) Development Rebate

B:) Investment Allowance

C:) Rehabilitation Allowance

D:) Tax Holiday

Correct: B

Q:17)An individual who initiates, creates and manages a new business can be called _____________.




Sol:

A:) A leader

B:) A manager

C:) A professional

D:) An entrepreneur

Correct: D

Q:18) Why are small businesses important to a country’s economy?

Sol:

A:) They give an outlet for entrepreneurs

B:) They can provide specialist support to larger companies

C:) They can be innovators of new products

D:) All the above

Correct: D

Q:19)As a business grows, time management continues to be an issue, but the entrepreneur’s major

concern usually becomes:

Sol:

A:) Setting goals

B:) Finding, retaining, and motivating qualified employees

C:) Measuring performance

D:) All of the above

Correct: B

Q:20)An entrepreneur who owns more than one business at a time is called ________.

Sol:

A:) An intrapreneur

B:) A corporate entrepreneur

C:) A portfolio entrepreneur


Correct: C

Q:21) Idea of new product is tested in potential consumers to determine consumer acceptance at

_________ stage.

Sol:




A:) Concept

B:) Product development

C:) Test marketing.

D:) Commercialization

Correct: C

Q:22)Which one of the following describes unemployment?

Sol:

A:) The number of people who voluntarily choose not to work

B:) The number of people who are jobless and are actively seeking work

C:) The number of people who are not actively seeking work

D:) The number of people actively seeking work who find work

Correct: B

Q:23) Which one of the following is not considered as one of the building blocks of the model

entrepreneur?

Sol:

A:) Technical skills

B:) Management competencies

C:) Business awareness

D:) Personal attributes

Correct: C

Q:24) The purpose of soft loan scheme is to encourage units to undertake ___________.

Sol:

A:) Modernization of plant and machinery

B:) Replacement of plant and machinery

C:) Renovation of plant and machinery

D:) All the above

Correct: D

Q:25) Seed capital assistance is ___________.

Sol:

A:) A long-term assistance

B:) Initial assistance

C:) A help for the purchase of seeds




D:) A short-term assistance

Correct: B

Q:26)State Industrial corporations engage in the development of__________.

Sol:

A:) industrial estates

B:) institutional estates

C:) individual investors

D:) agricultural entrepreneurs

Correct: A


Sol:

A:) ICICI

B:) IDBI

C:) SFC

D:) IFCI

Correct: D

Q:28)IFCI stands for_____________.

Sol:




D:) Indian finance corporation and institution

Correct: A

Q:29)IFCI has been converted into a________.

Sol:

A:) joint stock company

B:) co-operative society

C:) partnership firm

D:) sole proprietorship

Correct: A




Q:30) SIDBI was set up as a subsidiary of_________.

Sol:

A:) IDBI

B:) IFCI

C:) ICICI

D:) SFC

Correct: A

Q:31)Which of the following is a function of SIDBI?

Sol:

A:) Extension of seed capital

B:) Discounting of bills

C:) Providing factoring services


Correct: D

Q:32) SFC is prohibited from granting financial assistance to any company whose aggregate paid up

capital exceed__________.

Sol:

A:) 1 crore

B:) 1.5 crores

C:) 2 crores

D:) 2.5 crores

Correct: A

Q:33) SIPCOT's financial assistance is in the form of __________.

Sol:

A:) term loan

B:) seed capital scheme

C:) underwriting the capital issues


Correct: D

Q:34) The business development department of SIPCOT guides entrepreneurs in -------.




Sol:

A:) applying for licences

B:) approval on collaboration

C:) allocation of scarce raw materials

D:) All the above

Correct: D

Q:35) TIIC is sponsored by the__________.

Sol:

A:) Government of Karnataka

B:) Government of Andhra Pradesh

C:) Government of Kerala

D:) Government of Tamil Nadu

Correct: D

Q:36) In backward areas, term loans for expansion or setting up a new unit are available at

__________ .

Sol:

A:) concessional terms

B:) differential terms

C:) standard terms

D:) specific terms

Correct: A

Q:37) A commercial banker would prefer a ____________ debt-equity ratio over the years as it

indicates financial strength of a unit.

Sol:

A:) Declining

B:) Increasing

C:) Stable

D:) Fluctuating

Correct: A

Q:38) EDPs course contents contain ___________.

Sol:




A:) General introduction to entrepreneurs

B:) Motivation training

C:) Managerial skills

D:) All the above

Correct: D

Q:39) Entrepreneurial Guidance Bureau (EGB) was set up by____________.

Sol:

A:) SISI

B:) SIPCOT

C:) IIC

D:) SIDCO

Correct: C

Q:40) _____________ can be defined as a specifically evolved work plan designed to achieve a specific

objective within a specific period of time

Sol:

A:) Idea generation

B:) Opportunity Scanning

C:) Project

D:) Strategy

Correct: C

Q:41) Large investment is made in fixed assets; the project will be termed as __________.

Sol:

A:) Capital Intensive

B:) Labour Intensive

C:) Product Intensive

D:) Market Intensive

Correct: A

Q:42) PERT stands for __________.

Sol:

A:) Programme Evaluation and Research Techniques

B:) Project Evaluation and Review Techniques




C:) Programme Evaluation and Review Techniques

D:) Project Evaluation and Research Techniques

Correct: B

Q:43) _____________ is used to accomplish the project economically in the minimum available time

with limited resources

Sol:

A:) Project Scheduling

B:) Network Analysis

C:) Budget Analysis

D:) Critical Planning

Correct: A

Q:44) ______________ is a form of financing especially for funding high technology, high risk and

perceived high reward projects

Sol:

A:) Fixed capital

B:) Current capital

C:) Seed capital

D:) Venture capital

Correct: D

Q:45) In _________, machines and equipment are arranged in the order or sequence in which they

are to be used for manufacturing the product

Sol:

A:) Factory Layout

B:) Product Layout

C:) Process Layout

D:) Combined Layout

Correct: B

Q:46) The term ___________ denotes bonus or financial aid which is given by a government to an

industry to help it compete with other units

Sol:

A:) Incentive




B:) Subsidy

C:) Bounty

D:) Concession

Correct: C

Q:47) The granting of cash subsidy on the capital investment is called __________.

Sol:

A:) Concessional finance

B:) Quantum of Subsidy

C:) Interest Subsidy

D:) Central Investment Subsidy

Correct: D

Q:48) New Small Scale industries are exempted from the payment of income tax under section 80J

is called __________

Sol:

A:) Development Rebate

B:) Investment Allowance

C:) Rehabilitation Allowance

D:) Tax Holiday

Correct: B

Q:49) ____________ is primarily concerned with the identification of the project demand potential

and the selection of the optimal technology.

Sol:

A:) Techno-economic analysis

B:) Feasibility analysis

C:) Input analysis

D:) Financial analysis

Correct: A

Q:50)_____________ refers to some action which is a time consuming effort necessary to complete

a specific event.

Sol:

A:) A Network




B:) An Activity

C:) An Event

D:) A Node

Correct: B

Unit IV Study of Domestic and Foreign Trade

Q:1) Trade between two countries can be useful if cost ratios of goods are:

Sol:




A:) Undetermined

B:) Decreasing

C:) Equal

D:) Different

Correct: D

Q:2) The term Euro Currency market refers to

Sol:

A:) The international foreign exchange market

B:) The market where the borrowing and lending of currencies take place outside the country of issue

C:) The countries which have adopted Euro as their currency

D:) The market in which Euro is exchanged for other currencies

Correct: B

Q:3) Which of the following theories suggests that firms seek to penetrate new markets over time?

Sol:

A:) Imperfect Market Theory

B:) Product cycle theory

C:) Theory of Comparative Advantage


Correct: B

Q:4) Dumping refers to:

Sol:

A:) Reducing tariffs

B:) Sale of goods abroad at low a price, below their cost and price in home market

C:) Buying goods at low prices abroad and selling at higher prices locally

D:) Expensive goods selling for low prices

Correct: B

Q:5) International trade and domestic trade differ because of:

Sol:

A:) Different government policies

B:) Immobility of factors

C:) Trade restrictions





Correct: D

Q:6)The margin for a currency future should be maintained with the clearing house by

Sol:

A:) The seller

B:) The buyer

C:) Either the buyer or the seller as per the agreement between them

D:) Both the buyer and the seller

Correct: D

Q:7)The following statement with respect to currency option is wrong

Sol:

A:) Foreign currency- Rupee option is available in India

B:) An American option can be executed on any day during its currency

C:) Put option gives the buyer the right to sell the foreign currency

D:) Call option will be used by exporters

Correct: D

Q:8)Govt. policy about exports and imports is called:

Sol:

A:) Commercial policy

B:) Fiscal policy

C:) Monetary policy

D:) Finance policy

Correct: A

Q:9)Which of the following is international trade:

Sol:

A:) Trade between countries

B:) Trade between regions

C:) Trade between provinces

D:) Both (b) and (c)

Correct: A




Q:10) Market in which currencies buy and sell and their prices settle on is called the

Sol:

A:) International bond market

B:) International capital market

C:) Foreign exchange market

D:) Eurocurrency market

Correct: C

Q:11) Which of the following is international trade:

Sol:

A:) Trade between provinces

B:) Trade between regions

C:) Trade between countries

D:) (b) and (c) of above

Correct: C

Q:12) Theory of comparative advantage was presented by:

Sol:

A:) Adam Smith

B:) Ricardo

C:) Hicks

D:) Arshad

Correct: B

Q:13) Which is NOT an advantage of international trade?

Sol:

A:) Export of surplus production

B:) Import of defence material

C:) Dependence on foreign countries

D:) Availability of cheap raw materials

Correct: C

Q:14)If Japan and Pakistan start free trade, difference in wages in two countries will:

Sol:

A:) Increase




B:) Decrease

C:) No effect

D:) Double

Correct: B

Q:15)Trade between two countries can be useful if cost ratios of goods are:

Sol:

A:) Equal

B:) Different

C:) Undetermined

D:) Decreasing

Correct: B

Q:16)Modern theory of international trade is based n the views of:

Sol:

A:) Robbins and Ricardo

B:) Adam Smith and Marshall

C:) Heckcsher and Ohlin

D:) Saleem and Kareem

Correct: C

Q:17)Foreign trade creates among countries:

Sol:

A:) Conflicts

B:) Cooperation

C:) Hatred

D:) Both (a) & (b)

Correct: B

Q:18)Net exports equal:

Sol:

A:) Exports x Imports

B:) Exports + Imports

C:) Exports - Imports

D:) Exports of services only

Correct: C




Q:19)A tariff:

Sol:

A:) Increases the volume of trade

B:) Reduces the volume of trade

C:) Has no effect on volume of trade

D:) (a) and (c) of above

Correct: B

Q:20)A tariff is:

Sol:

A:) A restriction on the number of export firms

B:) Limit on the amount of imported goods

C:) Tax and imports

D:) (b) and (c) of above

Correct: C

Q:21)The word Retail is derived from the—— word.

Sol:

A:) Latin.

B:) French.

C:)English

D:) German

Correct: A

Q:22)Retailer is a person who sells the goods in a———.

Sol:

A:) large quantities.

B:) small quantities.

C:) both a & B:)

D:) none of these.

Correct: B

Q:23)The main objective of the management is——–.




Sol:

A:) profitability

B:) sales growth

C:) return on investment

D:) all of these

Correct: D

Q:24) In retailing there is a direct interaction with——-.

Sol:

A:) producer.

B:) customer.

C:)wholesaler.

D:) all of these.

Correct: D

Q:25)Retailing creates——-.

Sol:

A:) time utility

B:) place utility

C:) ownership utility

D:) all of these

Correct: D

Q:26) ———activities performed by the retailers.

Sol:

A:) assortment of offerings.

B:) holding stock.

C:) extending services.

D:) all of these.

Correct: D

Q:27) The term stakeholders which includes——-.

Sol:

A:)stock holders.

B:) consumers.




C:)suppliers.

D:) all the above.

Correct: D

Q:28) ——represents how a retailer is perceived by consumers and others.

Sol:

A:) image.

B:)sales.

C:) profit.

D:) none of these.

Correct: A

Q:29) The functions of management start with—–.

Sol:

A:) buying.

B:) planning.

C:) organizing.

D:) supervising.

Correct: B

Q:30) “Management is what a manager does” given by.

Sol:

A:) Henry fayol.

B:) F.W.Taylor.

C:) Dinkar Pagare.

D:) none of these.

Correct: C

Q:31)Human resource management process consists of ——.

Sol:

A:) recruitment.

B:)selection.

C:)training.

D:) all of these.

Correct: D




Q:32) —– is the process of seeking and attracting a pool of people from which qualified candidates for

job vacancies can be selected

Sol:

A:) Selection.

B:) Advertisement.

C:) Compensation.

D:) Recruitment.

Correct: D

Q:33) —— gives the nature and requirements of specific jobs.

Sol:

A:) Human resource planning.

B:) Job descriptions.

C:)Job analysis.

D:) None of these.

Correct: A

Q:34) —— is a kind of internal sources of recruitment.

Sol:

A:) Promotion.

B:) Employee recommendation.

C:) Transfer.

D:) All of these

Correct: D

Q:35)Attracting potential employees is more difficult in case of ———.

Sol:

A:) internal recruitment

B:) external of recruitment

C:) both a & b

D:) none of these

Correct: B

Q:36) —– is the next step after recruiting the retail personnel.




Sol:

A:) Supervision

B:)Compensation

C:) Training

D:) Selection

Correct: D

Q:37)—— test measure a person’s capacity or potential capability to learn and perform a job.

Sol:

A:)Aptitude test

B: Proficiency test

C:) Interest test

D:) Personality test

Correct: A

Q:38) A traditional format that sell 20-80 percent of groceries and other consumable product at

discounted prices

Sol:

A:) Dollar Store

B:) Discounted stores

C:) Chain store

D:) off price store

Correct: A

Q:39) —— component allow the retailer to offer the employees safety and security

Sol:

A:) Fixed component

B:) Fringe benefit component

C:) Variable component

D:)All of the above.

Correct: B

Q:40) ——- is the manner of providing a job environment that encourages employee’s accomplishment.

Sol:




A:) Compensation

B:) Supervision.

C:) Training

D:) None of the above.

Correct: B

Q:41)Store security relates to —-.

Sol:

A:) personal security

B:) merchandise security.

C:) both a & B:)

D:) none of these.

Correct: C

Q:42)Form of payment which a retailer may accept is —-.

Sol:

A:) cash only.

B:) cash &credit cards .

C:) cash &debit cards.

D:) all of these

Correct: D

Q:43) Many retailers have improved their operation productivity through —–.

Sol:

A:) computerization.

B:) outsourcing.

C:) both a & B:)

D:) none of these.

Correct: A

Q:44) The computerized check out is used by —–.

Sol:

A:) large retailers.

B:) small retailers.

C:) multi retailers

D:) all of these.




Correct: A

Q:45) With the help of——-a retailer pays an outsider party to undertake one or more of its operating

functions

Sol:

A:) outsourcing.

B:) credit management

C:) computerization.

D:) none of these.

Correct: A

Q:46) —— helps the retailers to face the crisis situations.

Sol:

A:) Risk management

B:) Credit management

C:) Financial management

D:) All of these

Correct: A

Q:47) —— is a key task for both large &small retailers.

Sol:

A:) Risk management

B:) Crisis management

C:) Inventory management

D:) All of these

Correct: D

Q:48) —— helps the retailers to complete the tasks within the short period of time.

Sol:

A:) Computerization

B:) Outsourcing

C:) Both 1 & 2

D:) None of these

Correct: A




Q:49) ———is a warning to potential thieves and muggers.

Sol:

A:) Insurance

B:) Security guards

C:) Outsourcing

D:) Credit management

Correct: B

Q:50) Insurance against——–is more important due to government rules.

Sol:

A:) environmental risk.

B:) production risk.

C:) both 1 & 2

D:) none of these

Correct: A

subject: business organisation & systems class: fy bba

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