Chapter 6 MCQ Questions – CA foundation

Reference Material from Net– Adhia

1. Which of the following Is part of various perspective of BCK?

(a) Technical and Commercial
(b) Financial (c) HR and Administrative
(d) All of thc above
Answer: (d) Allof the above
2. Under Commercial Facet, the P’s of good marketing are:
(a) Product, Price, Place & Promotion
(b) Product, People, Place & Promotion
(c) People, Product, Price & Promotions
(d) Price, Product, People and Place.
Answer:
(a) Product, Price, Place & Promotion
3. Which of the following sign language is related with food distinction?
(a) Fragile – handle with care
(b) Thisway up
(c) Keep Dry (d) Veg./Non Veg.
Answer:
(d) Veg./Non Veg.
4. Bull Market Is called __________.
(a) A market in which stock price is increasing consistently
(b) A market in which stock price is decreasing consistently
(c) Both (a) and (b)
(d) None of the above
Answer:
(a) A market in which stock price is increasing consistently
5. What is a bull market?
(a) A market in which the stock price are increasing consistently.
(b) A market in which the stock price are decreasing consistently.
(c) A market in which the stock price are stable over a long time.
(d) None of the above
Answer:
(a) A market in which the stock price are increasing consistently.
6. Carrying forward of transaction form one settlement period to the next without effecting
delivery or payment is called __________.
(a) Badla
(b) Beta (c) Blue chips
(d) Basket trading
Answer:
(a) Badla
7. Bid is the opposite of __________.
(a) Ask/offer
(b) Call (c) Equity
(d) None of the above
Answer:
(a) Ask/offer
8. Bid is the opposite of __________.
(a) Ask/Offer
(b) Call
(c) Equity (d) None
Answer:
(a) Ask/Offer
9. The lowest price at which an owner is willing to sell his security is:
(a) Bid
(b) ASK (c) Cags
(d) Sale value
Answer:
(b) ASK
10. The opposite of bid is __________.
(a) Ask/Offer
(b) Call
(c) Purchase (d) None of the above.
Answer:
(a) Ask/Offer
11. What is consolidation?
(a) It is an expense that is supposed to reflect the loss in value of a fixed asset.
(b) Combination of two or more enti¬ties that occurs when the entities transfer all their net assets
to a new entity created for that pur¬pose.
(c) Potential liability arising from a past transaction or a subsequent event.
(d) Costs that can be attributed clearly to the activity you are considering.
Answer:
(b) Combination of two or more enti¬ties that occurs when the entities transfer all their net assets
to a new entity created for that pur¬pose.
12. Which of the following is Return on Investment.
(a) Dividend
(b) Interest
(c) Yield
(d) None of the above
Answer:
(c) Yield
13. Shares of a company listed on stock exchange are:
(a) Securities
(b) Listed shares
(c) Debentures
(d) Bonds
Answer:
(b) Listed shares
14. A portion of the after-tax profits paid out to the owners of a business as a return on their
investment is:
(a) Dividend
(b) Expense
(c) Expenditure
(d) Deferred income
Answer:
(a) Dividend
15. The number of units of given currency that can be purchased for one unit of another currency
is called __________.
(a) Current Ratio
(b) Exchange Ratio (c) Equity
(d) Dividend
Answer:
(b) Exchange Ratio
16. It is the amount of revenue from sales which exactly equals the amount of expense.
(a) Breakeven point
(b) Total revenue
(c) Both (a) and (b)
(d) None of these
Answer:
(a) Breakeven point
17. What IPO is related to:
(a) Companies first issue to general public
(b) Rights issue of the company
(c) Both (a) & (b)
(d) None of these.
Answer:
(a) Companies first issue to general public
18. There may be a series of payments of an equal amount at fixed intervals for a specific number
of periods. When the payments occur at the beginning of each period, it is called as __________.
(a) Annuity
(b) Annuity Due (c) Perpetuity
(d) Perpetuity Due
Answer:
(b) Annuity Due
19. An economic resource that is ex-pected to be of benefit in the future is called as __________.
(a) Future Value
(b) Present Value (c) Asset
(d) None of these.
Answer:
(c) Asset
20. Which one of the following is not a part of intangible Assets?
(a) Copyrights
(b) Trade market (c) Bills Receivable
(d) Patents
Answer:
(c) Bills Receivable
21. A stock that provides a constant dividends and stable earnings even in the periods of
economic downturn is __________.
(a) Defensive Stock
(b) Cash “budget
(c) Income stock (d) Listed stock
Answer:
(a) Defensive Stock
22. __________ is the simultaneous purchase and sale of two identical commodities or
instruments. This simultaneous sale and purchase is done in order to take advantage of the price
variations in two different markets.
(a) Cap
(b) Term insurance (c) Arbitrage
(d) Hedge
Answer:
(c) Arbitrage
23. What are mutual funds?
(a) A pool of money managed by experts by investing in stocks, bonds and other securities with
the objective of improving their savings.
(b) A number of shares which are less than or greater than but not equal to the board lot size.
(c) A company’s first issue of shares to general public.
(d) None of the above
Answer:
(a) A pool of money managed by experts by investing in stocks, bonds and other securities with
the objective of improving their savings.
24. You have sold goods worth ₹ 16,000 on credit to Mr. X, who has paid ₹ 10,000 only in full
settlement and balance ₹ 6,000 is not going to be received. This ₹ 6,000 may technically be called
as :
(a) Bad Debts
(b) Doubtful Debts
(c) Debts (d) Good Debts
Answer:
(a) Bad Debts
25. __________ is a statement of the financial position of a company at a single specific time
which usually lists all assets and liabilities.
(a) Trial Balance
(b) Balance Sheet (c) Final Accounts
(d) P&LA/c
Answer:
(b) Balance Sheet
26. Those Stock market players, who are pessimistic they expect share prices to fall one called as
__________.
(a) Bulls
(b) Bears (c) Long Position Holder
(d) None of these
Answer: (b) Bears
27. What is a financial instrument?
(a) Anything that ranges from cash, deed, negotiable instrument, or for that matter any written
and authenticated evidence that shows the existence of a transaction or agreement.
(b) Is basically any security that is held with the government and has the highest possible rate of
interest.
(c) Is a contract where the borrower, who is also the purchaser, pays a series of in statements that
in-cludes the interest of the principal amount
(d) None of the above
Answer:
(a) Anything that ranges from cash, deed, negotiable instrument, or for that matter any written
and authenticated evidence that shows the existence of a transaction or agreement.
28. __________ is a facility by which investors are in a position to buy/sell all 30 scripts of Sensex
in a position to buy/sell all 30 scrips of Sensex in the proportion of current weights in the Sensex
in one go.
(a) Internet Trading
(b) Index Trading (c) Basket Trading
(d) Group Trading
Answer:
(c) Basket Trading
29. __________ is a measurement of the relationship between Stock price of any particular Stock
and the move-ment of whole market.
(a) Standard Deviation
(b) Variance (c) Market Variance
(d) Beta
Answer:
(d) Beta
30. Risk is a probable chance that investments’ actual returns will be __________ than as
calculated.
(a) Increased
(b) Reduced
(c) Equal (d) None of the above
Answer:
(b) Reduced
31. The market in which the Stock prices one increasing Consistently is called as __________.
(a) Bull Market
(b) Bear Market
(c) Bear Trend
(d) Short Market
Answer:
(a) Bull Market
32. Financially sound companies with paid dividend is known as?
(a) Blue chip
(b) Bonds (c) Debenture
(d) None of the above.
Answer:
(a) Blue chip
33. What is the meaning of arbitrage?
(a) Buying & selling of different commodities
(b) Simultaneous buying & selling of identical commodities
(c) Only buying of identical com-modities
(d) Selling of identical commodities only
Answer:
(b) Simultaneous buying & selling of identical commodities
34. The number of units of given currency that can be purchased for one unit of another currency
is called __________.
(a) Current ratio
(b) Exchange rate (c) Equity
(d) Dividend
Answer:
(b) Exchange rate
35. __________ is an option that givens to the investor the right but no obligation to buy a
particular Stock at a specified price within a specified time period.
(a) Put Option
(b) Call Option (c) Derivative option
(d) Badla option.
Answer: (b) Call Option
36. __________ is the measure of return on investments in terms of percentage.
(a) Yield
(b) Index (c) Equity
(d) Bonus
Answer: (a) Yield
37. The unsecured short term Prom-issory Notes at large firms, usually issued in denominations at
₹ 1,00,000 or more with interest rate below the prime lending rate are called as :
(a) Bills Payable
(b) Commercial Paper
(c) Certificate of Deposit (d) Unsecured Loan.
Answer:
(b) Commercial Paper
38. __________ are the persons or entities to whom we have to pay money in future in respect of
goods purchased from them on credit.
(a) Creditors
(b) Debtors (c) Lenders
(d) Borrowed
Answer:
(a) Creditors
39. The Underlying asset in derivative may be:
(a) Financial Intermediary
(b) Commodities & Currencies (c) Interest Rates
(d) Any of these
Answer: (d) Any of these
40. __________ is a party or person who acts as a link between a provider who provides securities
and the user, who purchases the securities.
(a) Financial Intermediary
(b) Financial Agent
(c) Financial Advisor (d) None of these
Answer:
(a) Financial Intermediary
41. When the assets at a division one sold off piecemeal, rather than as an operating activity, it is
called as :
(a) Liquidation
(b) Merger (c) Amalgamation
(d) Absorption
Answer: (a) Liquidation
42. For Call options, __________ means the stock price is below the strike price.
(a) Out of the Money
(b) In the Money (c) Other than Money
(d) With Money.
Answer:
(a) Out of the Money
43. The collection of various types at securities related to various companies is called as:
(a) Portfolio
(b) Investment
(c) Bundle (d) Stock
Answer: (a) Portfolio
44. __________ ratio is calculated by dividing the market price of the share by the Earnings per
share.
(a) EPS
(b) DPS (c) P/E Ratio
(d) D/P Ratio
Answer:
(c) P/E Ratio
45. The rate of return earned on a bond, if it is called before its maturity date is called as:
(a) Yield to Maturity
(b) Yield to Call
(c) Yield to Earning (d) Yield to Return.
Answer:
(b) Yield to Call
46. A bond that pays no annual interest but is sold at a discount below par, is called as
__________.
(a) Zero Coupon Bonds
(b) Tax Free Bonds
(c) Interest Free Bonds (d) None of these.
Answer:
(a) Zero Coupon Bonds
47. Which of the following statements are true?
(a) Brand equity refers to the value of a brand.
(b) Brand equity is based on the ex-tent to which the brand has high brand loyalty, name
awareness, perceived quality and strong product associations.
(c) Brand equity includes other “in-tangible” assets such as patents, trademarks and channel
relation-ships.
(d) All of the above
Answer: (d) All of the above
48. Personal selling is done through __________.
(a) Singh language
(b) Social Media (c) Written Communication
(d) Oral Communication
Answer: (d) Oral Communication
49. __________ involves charging a relatively high price for a short period of time.
(a) Price skimming
(b) Price sensitivity
(c) USP (d) Holding price
Answer: (a) Price skimming
50. __________ is related with reaching out to a group of consumers sharing Coming Consumer
characteristics with the most appropriate advertisements.
(a) Tele Marketing
(b) Sphere Marketing (c) Target Marketing
(d) Test Marketing.
Answer: (c) Target Marketing
51. What is meant by B2B?
(a) Buying behaviour that concerns the process that buyers go through when deciding whether or
not to purchase goods or ser-vices.
(b) A company’s business model is management’s storyline for how the strategy will be a money
maker.
(c) Marketing activity directed from one business to another.
(d) None of the above
Answer:
(c) Marketing activity directed from one business to another.
52. __________ is a customer benefit that no other product can claim.
(a) Unique selling proposition
(b) Unique selling point (c) Special Benefit Preposition
(d) None of these.
Answer:
(a) Unique selling proposition
53. The Unique purpose of a firm that sets it apart from firms of its type, identifies scope of
operations in the manner that affects values and priorities of the firm’s strategies is called as :
(a) Mission
(b) Objective
(c) Purpose (d) Goal
Answer:
(a) Mission
54. __________ is a strategy which involves setting low prices in order to discourage or deter
potential new extranets to the supplier’s market.
(a) Pre-Emptive Pricing
(b) Low Pricing (c) Cut-throat Pricing
(d) Bargaining Pricing.
Answer:
(a) Pre-Emptive Pricing
55. The falling or attitude that inclines a customer either to return to the com-pany/Shop/outlet
to purchase these again may be regarded as __________.
(a) Customer loyalty
(b) Customer need (c) Customer Satisfaction
(d) Customer want
Answer:
(a) Customer loyalty
56. __________ is the reduction in the price of goods given to encourage sale on cash base.
(a) Cash discount
(b) Trade discount (c) Both (a) & (b)
(d) None of these.
Answer:
(a) Cash discount
57. “Personal selling” is done through:
(a) Written Communication
(b) Oral Communication
(c) TV and Media (d) Sign Language
Answer:
(b) Oral Communication
58. The exploitation of comparatively small market segments by businesses that decide to
concentrate their efforts is called:
(a) Niche marketing
(b) Mass marketing (c) Market segmentation
(d) Market positioning
Answer:
(a) Niche marketing
59. The basic requirement that an individual buyer wishes to satisfy is __________.
(a) Customer loyalty
(b) Customer need (c) Customer Satisfaction
(d) Customer want
Answer:
(b) Customer need
60. A desire for a specific product or service to satisfy the underlying need is called as
__________.
(a) Customer loyalty
(b) Customer need (c) Customer Satisfaction
(d) Customer want
Answer:
(d) Customer want
61. What is price sensitivity?
(a) The effect a change in price will have on customers.
(b) Charging a relatively high price for a short time where a new, innovative, or much-improved
product is launched onto a mar-ket.
(c) A strategy involves setting lowr prices in order to discourage or deter potential new entrants to
the suppliers market.
(d) It measures the responsiveness of a change in demand for a product following a change in its
own price.
Answer:
(a) The effect a change in price will have on customers.
62. 4 P’s of marketing are:
(a) Plan, Price, Production, Publicity
(b) Plan, Production, Place and Pro-motion
(c) Plan, Price, Product, Promotion
(d) Product, Price, Place, Promotion
Answer:(d) Product, Price, Place, Promotion
63. Which of the following is included in additional P’s for service marketing?
(a) People
(b) Processes (c) Physical Evidence
(d) All of the above
Answer: (d) All of the above
64. When many consumers receive the same message from business and non-profit organizations
through mass media, such as broadcast television, radio and newspapers, regardless of Consumer
interest, it is called as __________.
(a) Block Marketing
(b) Mass Marketing (c) General Marketing
(d) Media Marketing.
Answer:
(b) Mass Marketing
65. __________ is related with the systematic gathering, recording and analysis of data about
problems re-lating to the marketing of goods & services.
(a) Market Research
(b) Market Analysis
(c) Market Penetration
(d) None of these
Answer:
(a) Market Research
66. The Strategy plays an inevitable role in the growth of any organization. The management’s
storyline for how the strategy will be a money market is called as __________.
(a) Super Strategy
(b) Mega Strategy
(c) Vision Strategy
(d) Business Model
Answer:
(d) Business Model

67. __________ is the process of comparing the products and services of a business against those
of Competitors in a market, or leading businesses in other markets, in order to find ways of
improving quality and performance.
(a) Benchmarking
(b) Standard Setting
(c) Variance Analysis
(d) None of these
Answer:
(a) Benchmarking
68. Sometimes, a single project is handled by multiple companies, which may be to buy something
or to build something. A combination of such several companies working together for a particular
purpose is called as __________.
(a) Consolidation
(b) Merger
(c) Consortium
(d) None of these
Answer:
(c) Consortium
69. Which one of the following are the examples of Fast-Moving Consumer Goods?
(a) Soaps, toothpastes & Hair Oils.
(b) Jams, Ketchups & packed Juices.
(c) Ready meal and baked beans.
(d) All of the above
Answer:
(d) All of the above
70. The process of estimating future demand by anticipating what buyers are likely to do under a
given set of marketing conditions:
(a) Cross Marketing
(b) Forecasting
(c) Market Development
(d) Internal Marketing
Answer:
(b) Forecasting
71. All the consumers have different characteristics. Therefore, they are usually divided Into
similar nature groups In order to deliver specially de signed advertisements that meet these
characteristics as closely as possible.
It refers to __________.
(a) Market Segmentation
(b Market Division
(c) Effective Marketing
(d) Mass Marketing.
Answer:
(a) Market Segmentation
72. If a business Is to grow exponen tially, there should be addition of value customers.
__________ is the process of growing sales by offering existing products or new versions of then
to new consumer groups.
(a) Market Research
(b) Market Development
(c) Market Entry
(d) Market Positioning
Answer:
(b) Market Development
73. There may be any aspect of the external environment which causes problems and which may
per cent a business In achieving Its objectives.
These one technically termed as:
(a) Threats
(b Limitations
(c) Disadvantages
(d) Hindrances.
Answer:
(a) Threats
74. __________ is high Soclo-econom Ic group of usually relatively young, likely, intelligent,
Socially and geo graphically mobile people who adopt new products first.
(a) First Movers
(b) Smart Researcher
(c) Innovators
(d) Marketing Champions.
Answer:
(c) Innovators
75. __________ is the use of technologies such as the internet, electronic data exchange and
industry extranets to streamline business transactions.
(a) E-Commerce
(b) E-Streaming
(c) E-Marketing
(d) None of these
Answer:
(a) E-Commerce
76. __________, is a very wide term that is used in context with financial agree-ments and
contracts.
(a) Account balance
(b) Acceptance
(c) Annuity
(d) Arbitrage
Answer:
(b) Acceptance

77. __________ is a certificate of savings deposit that promises the depositor the sum back along
with appropriate interest.
(a) Deposit
(b) Commercial Deposit
(c) Certificate of Deposit
(d) Commercial paper.
Answer:
(c) Certificate of Deposit
78. __________ represents the amount that is required to be main-tained by every scheduled
Bank with RBI.
(a) Cash Reserve Ratio
(b) Statutory Liquidity Ratio
(c) Repo rate
(d) Reserve Repo Rate
Answer:
(a) Cash Reserve Ratio
79. __________ is the interest rate at which the central Bank in the discharge of its function as
Banker’s Bank lends to the commercial banks.
(a) Bank Rate
(b) Rate of Interest
(c) Reverse Repo rate
(d) None of the above.
Answer:
(a) Bank Rate
80. What is a cap?
(a) A cap is a limit that regulates the increase or decrease in the rate of interest and instalments of
an adjustable rate mortgage.
(b) A cap is the total amount of cash that is present in the bank account and can also be
withdrawn immediately.
(c) A cap is the certificate of savings deposit that promises the depositor the sum back along with
appropriate interest.
(d) A cap is a loan where the time and cash flow between a short term loan and a long term loan is
filled up.
Answer:
(a) A cap is a limit that regulates the increase or decrease in the rate of interest and instalments of
an adjustable rate mortgage.
81. When the account holder of a bank withdraws his own money by card swiping, such card is
called as:
(a) Debit Card
(b) Credit Card
(c) Swipe Card
(d) None of these
Answer:
(a) Debit Card
82. The rate at which banks borrow money from the RBI against pledging or sale of government
securities to RBI is known as __________.
(a) Repo Rate
(b) Reverse Repo Rate
(c) Conversion Rate
(d) None of these
Answer:
(a) Repo Rate
83. If a schedule bank has surplus funds, then it can be deposited with the RBI for short periods.
Such rate of interest offered by the RBI is called as:
(a) Repo Rate
(b) Reverse Repo Rate
(c) Conversion Rate
(d) None of these
Answer:
(b) Reverse Repo Rate
84. A negotiable instrument that in-structs the bank to pay a particular amount of money from the
writer’s bank, to the receiver is called __________.
(a) A cheque
(b) A draft
(c) An overdraft
(d) RTGS
Answer:
(a) A cheque
85. __________ is the sum or portion of the value that is at stake of subject to loss from a
valuation in prevalent interest rates.
(a) Value at Risk
(b) Sum at Risk
(c) Amount at Risk
(d) Stake Risk
Answer:
(a) Value at Risk
86. A document is issued by a bank, on behalf of the buyer or the importer, stating its
commitment to pay a third party (Seller or the exporter), a specific amount, for the purchase of
goods by its customer, who is the buyer. Such document is called as:
(a) Letter of Guarantee
(b) Letter of Credit
(c) Letter of import
(d) None of these
Answer:
(b) Letter of Credit
87. A guarantee given by the lender that there will be no change in the quoted mortgage rates for
a specified period of time, which is called the __________.
(a) Lock-in period
(b) Maturity
(c) Holding Period
(d) Due date
Answer:
(a) Lock-in period

88. __________ is a system where in customers can conduct their transactions through the
internet.
(a) Internet Banking
(b) e-banking
(c) Online banking
(d) All of the above.
Answer:
(d) All of the above.
89. __________ is a technology where the banking organizations resort to the use of electronics,
computers and other networks to execute transactions and transfer funds.
(a) E-cash
(b) Digi-cash
(c) Hedge
(d) Cap
Answer:
(a) E-cash
90. Now-a-days, there is perfect inte-gration of computers and electronics into the field of
banking. The machine used to conduct transactions with the bank are called as:
(a) Automatic Teller Machine
(b) Automated Teller Machine
(c) Automatic Transaction Machine
(d) None of these.
Answer:
(b) Automated Teller Machine
91. __________ is a loan where the time and cash flow between a short term long and a long term
loan is filled up.
(a) Bridge Financing
(b) Gestation Financing
(c) Step Financing
(d) Terminal Financing
Answer:
(a) Bridge Financing
92. When the rates of interest can be changed contractually by lender, de-positor or the payee,
these are called as __________.
(a) Changing rates
(b) Administered Rates (c) Adjustable Rates
(d) Accepted Rates
Answer:
(b) Administered Rates
93. __________ is a very large loan extended by a group of small banks to a single borrower,
especially corporate borrowers.
(a) Syndicated Loan
(b) Common Loan (c) Combined Loan
(d) Consortium Loan.
Answer:
(a) Syndicated Loan
94. There are two types of cords: One is based upon magnetic stripes & others are based on
computer chip. The Computer chip based cards are used for data Storage, processing and
identification. These cards are known as:
(a) Pen Drive
(b) Smart Cards (c) Debit Card
(d) Computer Cords.
Answer:
(b) Smart Cards
95. Sometimes, banks offer services to other Corporate entities, large institu-tions & other
financial institutions. The Single term used for all these services offered by the bank is
__________.
(a) Complete Banking
(b) Centralized Banking (c) Wholesale Banking
(d) None of these
Answer:
(c) Wholesale Banking
96. __________ is a secret code of numbers and alphabets given to Customers to perform
transactions through an automatic letter machine.
(a) Personal Identification Number
(b) Permanent identification Number
(c) Provision identification Number
(d) Permanent Identity Number.
Answer:
(a) Personal Identification Number
97. Mr. A is to pay ₹ 10,000 to Mr. B. In this examples A and B may be called as __________ and
__________.
(a) Payer & Payee
(b) Payee & Payer (c) Payer & Given
(d) Receiver and Payee
Answer:
(a) Payer & Payee
98. __________ is the amount paid by the buyer to the potential seller of a retail estate, in the
initial stages of negotiation of purchase.
(a) Earnest Money Deposit
(b) Advance
(c) Repayment
(d) Deposit
Answer:
(a) Earnest Money Deposit
99. When the cheque is drawn by a bank on its own name to make pay-ment to other
organizations, banks, corporations, etc., then it is called as :
(a) Cashier’s Cheque
(b) Self Cheque
(c) Yourself Cheque
(d) None of these
Answer:
(a) Cashier’s Cheque
100. When the interest is calculated on interest also, it is regarded as:
(a) Simple Interest
(b) Simple Annuity
(c) Compound Interest
(d) Compound Annuity
Answer:
(c) Compound Interest
101. The procedure wherein a person in debt negotiates the price with the lender of a loan, in
order to reduce the instalments is called as:
(a) Debt Settlement
(b) Debt Repayment (c) Debt Negotiation
(d) None of these
Answer:
(a) Debt Settlement
102. __________ is a legal agreement between the lender and the borrower where real estate
property is used as collateral for the loan, in order to secure the payment of the debt.
(a) Mortgage
(b) Reverse Mortgage
(c) Guarantee (d) Loan Agreement
Answer:
(a) Mortgage
103. The amount withdrawn from the bank in excess of what has been deposited and appearing in
the bank is called as:
(a) Overdraft
(b) Balance
(c) Term Loan (d) None of these
Answer:
(a) Overdraft
104. __________ is a type of mortgage given to a buyer who does not make any down payments
while borrowing.
(a) Zero Down Payment Mortgage
(b) Zero Interest Mortgage
(c) Interest free Mortgage
(d) Obligation-free Mortgage.
Answer:
(a) Zero Down Payment Mortgage
105. When a country removes the bar¬riers to international trade in goods and services and the
international flows of Capital, then this process may be regarded as:
(a) Globalization
(b) Privatization
(e) International Trade
(d) Liberalization
Answer:
(a) Globalization
106. _____________ is the systematic process of easing of government’s control over the private
business activity.
(a) Globalization
(b) Liberalization (c) Privatization
(d) None of these
Answer:(b) Liberalization
107. ___________ is a road map of company’s future:
(a) Objective
(b) Goal (c) Vision
(d) Aim
Answer:
(c) Vision
108. ____________ Is a broader mea sure of development of a country that Includes economic
parameters such as Income and non-economic parameters such as social equity and ecological
balance.
(a) Overall Development
(b) Sustainable Development (c) Economic Development
(d) None of these
Answer:
(b) Sustainable Development
109. The BCK philosophy that pro-motes the belief and evaluates the business performance on
the basis of attaltiment of profit, care for people and care for the plant at equal parani eters Is
called as:
(a) Bottom Line
(b) Social Line
(c) Triple Bottom Line
(d) Triple Social Line
Answer:
(c) Triple Bottom Line
110. __________ is a commercial activity implying moving of supplies to the production facilities
and goods and services to their respective markets.
(a) Transporting
(b) Logistics (c) Moving
(d) None of these
Answer:
(b) Logistics
111. When two or more companies come together to expand their business operations in a newly
created entity.
(a) Joint Venture
(b) Acquisition (c) Partnership
(d) Merger
Answer:
(d) Merger
112. When two companies come to-gether to expand their business opera-tion in a newly created
entity.
(a) Merger
(b) Partnership (c) Acquisition
(d) Joint Venture
Answer:
(a) Merger
113. The non or partial realization of expectation is called as __________.
(a) Returns
(b) Earnings (c) Risk
(d) None of these
Answer:
(c) Risk
114. The affairs of a corporation should be executed in a manner so as to ensure that they are
conducted in an ethical manner and as per provisions of law. This system of overseeing the affairs
of a Corporation is called as:
(a) Governance (b) Observation
(c) Corporate Governance
(d) Corporate Observations
Answer:
(c) Corporate Governance
115. ABC Ltd. has purchased various assets (valued at ₹ 10,00,000) at the consolidated price of ₹
12,00,000. The excess amount paid (₹ 2,00,000) is regarded as :
(a) Goodwill
(b) Capital Reserve
(c) Acquisition Cost
(d) Amalgamation Reserve.
Answer:
(a) Goodwill
116. __________ is a set of all the variable external to the firm but influ-ence its decision making
fund in town are also influenced by it.
(a) Business Environment
(b) Business Organisation
(c) Business Corpus
(d) None of these
Answer:
(a) Business Environment
117. When two or more products separated in the course of the same processing operation,
usually having same substantial values are called as:
(a) Joint Product
(b) By Product
(c) Main Product
(d) Mixed Product
Answer:
(a) Joint Product
118. __________ is the type of insurance which is for a certain time period which provides for no
defrayal to the insured industrial, excluding losses during the period, and that becomes null upon
its expiration.
(a) Term Insurance
(b) Fixed Insurance (c) Specific Insurance
(d) None of these
Answer:
(a) Term Insurance
119. __________ is the term which may be used for basic facilities like buildings, roads, power
supplies, etc.
(a) Infrastructure
(b) Utilities (c) Capital Items
(d) Revenue Items.
Answer:
(a) Infrastructure
120. The financial recovery of a company that has been performing poorly for an extended time is
called as:
(a) Sustenance
(b) Turnaround (c) Capital Recovery
(d) None of these
Answer:
(b) Turnaround
121. __________ refers to economic insolvency, wherein the person’s assets are liquidated, to
pay off all liabilities with the help of a bankruptcy trustee or a Court of law.
(a) Recovery
(b) Bad Debts
(c) Insolvency (d) Bankruptcy
Answer:
(d) Bankruptcy
122. ABC Ltd. takes over XYZ Ltd. in such a manner that forthwith ABC Ltd. will control all the
business operations of XYZ. It may be called as:
(a) Merger
(b) Demerger
(c) Acquisition
(d) None of these
Answer:
(c) Acquisition
123.The performance of which scheme does the National Housing Bank monitor?
a) Liberalized Finance Scheme
b) Golden Jubilee Rural Housing Finance Scheme
c) Energy Efficient Housing Finance Scheme
d) Finance scheme for indirect loans
e) Answer: b
124. When did the National Bank of Agriculture and Rural Development establish?
a) July, 1982
b) July, 1969
c) June, 1951
d) June, 1961
Answer: a
According to which guidelines did the Government pick up the entire SBI shares held by the RBI?
a) National Stock Exchange of India
b) Securities Commission
c) Financial Regulations
d) Securities and Exchange Board of India (SEBI)
Answer: d.
Courtesy : and other sources